Market Newsdesk

July 30, 2021 6:03 am

CLOUGH GLOBAL OPPORTUNITIES FUND SECTION 19(a) NOTICE Statement Pursuant to Section 19(a) of the Investment Company Act of 1940

PR Newswire

DENVER, July 30, 2021 /PRNewswire/ — Today, the Clough Global Opportunities Fund (NYSE MKT: GLO) (the “Fund”), a closed-end fund, paid a monthly distribution on its common stock of $0.1087 per share to shareholders of record at the close of business on July 20, 2021.

The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.

Current Distribution from:
	Per Share ($)	%
Net Investment Income	0.0000	0.00%
Net Realized Short-Term Capital Gain	0.1087	100.00%
Net Realized Long-Term Capital Gain	0.0000	0.00%
Return of Capital or other Capital Source	0.0000	0.00%
Total (per common share)	0.1087	100.00%
Fiscal Year-to-Date Cumulative Distributions from:
Fiscal Year-to-Date Cumulative Distributions from:
	Per Share ($)	%
Net Investment Income	0.0000	0.00%
Net Realized Short-Term Capital Gain	0.9403	100.00%
Net Realized Long-Term Capital Gain	0.0000	0.00%
Return of Capital or other Capital Source	0.0000	0.00%
Total (per common share)	0.9403	100.00%

The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Presented below are return figures, based on the change in the Fund’s Net Asset Value per share (“NAV”), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.

Fund Performance & Distribution Information

Fiscal Year to Date (11/01/2020 through 6/30/2021)
	Annualized Distribution Rate as a Percentage of NAV^		10.27%
	Cumulative Distribution Rate on NAV^⁺		7.40%
	Cumulative Total Return on NAV*		33.55%

Average Annual Total Return on NAV for the 5 Year Period Ending 6/30/2021**		14.96%

Past performance is not indicative of future results.

^ Based on the Fund’s NAV as of June 30, 2021.

⁺Cumulative distribution rate is based on distributions paid to date for the period November 1, 2020 through July 30, 2021.

*Cumulative fiscal year-to-date return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions and that all rights in the Fund’s rights offering were exercised, for the period November 1, 2020 through June 30, 2021.

**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and that all rights in the Fund’s rights offering were exercised, as of the last business day of the month prior to the month of the current distribution record date.

While the NAV performance may be indicative of the Fund’s investment performance, it does not measure the value of a shareholder’s investment in the Fund. The value of a shareholder’s investment in the Fund is determined by the Fund’s market price, which is based on the supply and demand for the Fund’s shares in the open market. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Managed Distribution Plan.

Furthermore, the Board of Trustees reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The Fund’s distribution policy is subject to modification by the Board of Trustees at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

ALPS Portfolio Solutions Distributor, Inc. FINRA Member Firm.

Clough Global Opportunities Fund (NYSE MKT: GLO)

1290 Broadway, Suite 1000

Denver, CO 80203

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SOURCE Clough Global Dividend and Income Fund

July 30, 2021 6:03 am

Aon Reports Second Quarter 2021 Results

PR Newswire

DUBLIN, July 30, 2021 /PRNewswire/ —

Second Quarter Key Metrics

Total revenue increased 16% to $2.9 billion, including organic revenue growth of 11%
Operating margin decreased 50 basis points to 23.3%, and operating margin, adjusted for certain items, decreased 100 basis points to 25.8%, including a negative impact of 470 basis points from the repatterning of expenses described in the first quarter
EPS decreased 2% to $1.66, and EPS, adjusted for certain items, increased 17% to $2.29
For the first six months of 2021, cash flows from operations increased 10% to $1,345 million, and free cash flow increased 13% to $1,275 million

Second Quarter Highlights

Repurchased 1.1 million class A ordinary shares for approximately $240 million
Announced an 11% increase to the quarterly cash dividend to $0.51 per share

Subsequent Events

Subsequent to the close of the quarter and as a result of the inability to secure an expedited resolution to litigation with the U.S. Department of Justice, Aon agreed to terminate its proposed business combination with Willis Towers Watson, requiring Aon to pay a $1 billion termination fee⁽¹⁾. Aon will move forward independently, focused on delivering innovation on behalf of clients, growth opportunities for colleagues, and value creation for shareholders
Subsequent to the close of the quarter, Aon and Alight executed an amended agreement to divest the Aon Retiree Health Exchange^™. The previously announced agreement to sell Aon’s U.S. retirement business has been terminated

Aon plc (NYSE: AON) today reported results for the three months ended June 30, 2021.

Net income attributable to Aon shareholders was $379 million, or $1.66 per share, compared to $398 million, or $1.70 per share, in the prior year period. Net income per share attributable to Aon shareholders, adjusted for certain items, increased 17% to $2.29, including a favorable impact of $0.04 per share from translating prior year period results at current period foreign exchange rates (“foreign currency translation”), compared to $1.96 in the prior year period. Certain items that impacted second quarter results and comparisons with the prior year period are detailed in the “Reconciliation of Non-GAAP Measures – Operating Income and Diluted Earnings Per Share” on page 10 of this press release.

“In the second quarter, our team delivered 11% organic revenue growth, our strongest growth in over a decade, that translated into 17% growth in earnings per share, and contributed to 13% free cash flow growth for the first half,” said Greg Case, Chief Executive Officer. “These results demonstrate the incredible resilience of our colleagues and the power of Aon United. We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy. Our ability to innovate on behalf of clients remains unrivaled and continues to translate into significant progress against key financial metrics and shareholder value creation.”

SECOND QUARTER 2021 FINANCIAL SUMMARY

Total
revenue in the second quarter increased 16% to $2.9 billion compared to the prior year period driven by 11% organic revenue growth, a 4% favorable impact from foreign currency translation, and a 1% favorable impact from acquisitions, divestitures, and other.

Total operating expenses in the second quarter increased 16% to $2.2 billion compared to the prior year period due primarily to a $135 million negative impact from the repatterning of expenses within the year, as previously described in the first quarter results, a $98 million unfavorable impact from foreign currency translation, an increase in expense associated with 11% organic revenue growth, and a $20 million increase in transaction costs related to the terminated combination with Willis Towers Watson, partially offset by a $17 million decrease from accelerated amortization related to certain tradenames that were fully amortized in the second quarter of 2020.

Foreign currency translation in the second quarter had a $5 million, or $0.02 per share, favorable impact on U.S. GAAP net income and a $9 million, or $0.04 per share, favorable impact on adjusted net income. If currency were to remain stable at today’s rates, the Company would expect a favorable impact of approximately $0.02 per share in the third quarter of 2021 and $0.01 per share in the fourth quarter of 2021.

Effective tax rate used in the Company’s U.S. GAAP financial statements in the second quarter was 34.1%, compared to 17.1% in the prior year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the second quarter of 2021 increased to 20.1% compared to 17.5% in the prior year period, primarily driven by changes in the geographical distribution of income and a net favorable impact from discrete items. The prior year period also included a net favorable impact from discrete items.

Weighted average diluted shares outstanding decreased to 228.0 million in the second quarter compared to 233.6 million in the prior year period. The Company repurchased 1.1 million Class A Ordinary Shares for approximately $240 million in the second quarter. As of June 30, 2021, the Company had approximately $5.0 billion of remaining authorization under its share repurchase program.

YEAR TO DATE 2021 CASH FLOW SUMMARY

Cash flows provided by operations for the first six months of 2021 increased $126 million, or 10%, to $1,345 million compared to the prior year period, primarily due to strong operating income growth and a $59 million decrease in restructuring cash outlays. The prior year period included near-term actions taken due to uncertainty surrounding COVID-19.

Free cash flow, defined as cash flows from operations less capital expenditures, increased 13%, to $1,275 million for the first six months of 2021 compared to the prior year period, reflecting an increase in cash flows from operations and a $19 million decrease in capital expenditures.

SECOND QUARTER 2021 REVENUE REVIEW

The second quarter revenue reviews provided below include supplemental information related to organic revenue growth, which is a non-GAAP measure that is described in detail in “Reconciliation of Non-GAAP Measures – Organic Revenue Growth and Free Cash Flow” on page 9 of this press release.

	Three Months Ended June 30,
*(millions)*	2021		2020		% Change	Less: Currency Impact	Less: Fiduciary Investment Income	Less: Acquisitions, Divestitures & Other	Organic Revenue Growth
Revenue
Commercial Risk Solutions	$	1,349	$	1,126	20%	5%	—%	1%	14%
Reinsurance Solutions	500		448		12	1	—	2	9
Retirement Solutions	440		393		12	6	—	1	5
Health Solutions	307		258		19	5	—	—	14
Data & Analytic Services	294		274		7	4	—	(2)	5
Elimination	(4)		(2)		N/A	N/A	N/A	N/A	N/A
Total revenue	$	2,886	$	2,497	16%	4%	—%	1%	11%

Total revenue increased $389 million, or 16%, to $2,886 million compared to the prior year period, including organic revenue growth of 11% reflecting growth in the core, driven by net new business generation and ongoing strong retention, as well as double-digit growth overall in the more discretionary portions of the business.

Commercial Risk Solutions organic revenue growth of 14% reflects strong new business generation, retention, and management of the renewal book portfolio, highlighted by double-digit growth in the U.S., Canada, EMEA, Asia, and Latin America, driven by continued strength in core P&C. Results also reflect significant growth in the more discretionary portions of our business, primarily in transaction liability, project-related work, construction, and cyber consulting, which were negatively impacted in the prior year period. On average globally, exposures and pricing were modestly positive, resulting in a modestly positive market impact.

Reinsurance Solutions organic revenue growth of 9% reflects growth in treaty, driven by continued net new business generation globally, as well as double-digit growth in capital markets transactions and solid growth in facultative placements. Market impact was modestly positive on results in the quarter. The majority of revenue in our treaty portfolio is recurring in nature and is recorded in connection with the major renewal periods that take place throughout the first half of the year, while the second half of the year is largely driven by facultative placements and capital markets that are more transactional in nature.

Retirement Solutions organic revenue growth of 5% reflects double-digit growth in Human Capital, driven by both rewards and assessments solutions, and an increase in the Retirement business, primarily from higher utilization rates.

Health Solutions organic revenue growth of 14% reflects growth in the more discretionary portions, primarily due to an increase in project-related work, as well as strength in voluntary benefits. The prior year period was negatively impacted by COVID-19 and the impact from a one-time adjustment identified in connection with the implementation of a new system. Results also include growth globally in core health and benefits brokerage, driven by strong retention and management of the renewal book portfolio.

Data & Analytic Services organic revenue growth of 5% reflects solid growth globally in the affinity business across both consumer and business solutions, while our travel and events practice was flat. Results also include continued double-digit growth generated through our CoverWallet digital platform, driven by accelerated client adoption of online solutions.

SECOND QUARTER 2021 EXPENSE REVIEW

	Three Months Ended June 30,
*(millions)*	2021		2020		$ Change		% Change
Expenses
Compensation and benefits	$	1,628	$	1,361	$	267	20%
Information technology	115		107		8		7
Premises	76		74		2		3
Depreciation of fixed assets	41		41		—		—
Amortization of intangible assets	36		58		(22)		(38)
Other general expense	318		262		56		21
Total operating expenses	$	2,214	$	1,903	$	311	16%

Compensation and benefits expense increased $267 million, or 20%, compared to the prior year period due primarily to a $135 million negative impact from the repatterning of expenses within the year, as previously described in the first quarter results, a $76 million unfavorable impact from foreign currency translation and an increase in expense associated with 11% organic revenue growth.

Information technology expense increased $8 million, or 7%, compared to the prior year period due primarily to an increase in expense associated with 11% organic revenue growth, a $3 million unfavorable impact from foreign currency translation, and investments to support long-term growth.

Premises expense increased $2 million, or 3%, compared to the prior year period due primarily to a $5 million unfavorable impact from foreign currency translation and an increase in office occupancy expenses, partially offset by a decrease in rent expense.

Depreciation of fixed assets was flat compared to the prior year period.

Amortization and impairment of intangible assets decreased $22 million, or 38%, compared to the prior year period due primarily to a $17 million decrease from accelerated amortization related to certain tradenames that were fully amortized in the second quarter of 2020.

Other general expenses increased $56 million, or 21%, compared to the prior year period due primarily to a $20 million increase in transaction costs related to the terminated combination with Willis Towers Watson, a $10 million unfavorable impact from foreign currency translation, and an increase in expense associated with 11% organic revenue growth.

The remaining transaction costs related to the terminated combination with Willis Towers Watson, including the termination fee, will be recognized in Q3 2021.

SECOND QUARTER 2021 INCOME SUMMARY

Certain noteworthy items impacted adjusted operating income and adjusted operating margins in the second quarters of 2021 and 2020, which are also described in detail in “Reconciliation of Non-GAAP Measures – Operating Income and Diluted Earnings Per Share” on page 10 of this press release.

Three Months Ended June 30,

(millions)

2021

2020

% Change

Revenue

2,886

2,497

16%

Expenses

2,214

1,903

Operating income

672

594

13%

Operating margin

23.3%

23.8%

Operating income – as adjusted

746

670

11%

Operating margin – as adjusted

25.8%

26.8%

Operating income increased to $672 million compared to the prior year period. Operating income, adjusted for certain items increased $76 million, or 11%, and operating margin, adjusted for certain items, decreased 100 basis points to 25.8%, each compared to the prior year period. Adjusted operating income and adjusted operating margin primarily reflect strong organic revenue growth that significantly outpaced investment, as well as a $135 million, or 470 basis points, negative impact from the repatterning of expenses described in the first quarter.

Interest income increased to $3 million compared to the prior year period. Interest expense decreased $11 million to $78 million compared to the prior year period reflecting lower outstanding term debt and a decrease in commercial paper borrowings. Other pension income increased $6 million to $8 million compared to the prior year period. Other expense decreased $2 million compared to the prior year period.

Conference Call, Presentation Slides and Webcast Details

The Company will host a conference call on Friday, July 30, 2021 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at www.aon.com.

(1)

Aon Corporation, a subsidiary of Aon plc, paid the Regulatory Termination Fee to Willis Towers Watson on July 27, 2021, reflecting that U.S. business services provided by Aon Corporation and its subsidiaries were the primary focus of the Department of Justice’s challenge to our proposed combination. The Regulatory Termination Fee was paid to defend the existing U.S. business of Aon Corporation and to avoid additional remedy divestitures of critical Aon Corporation business segments in the U.S. and the continuing delay and uncertainty in completing the combination.

About Aon

Aon plc (NYSE: AON) Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

Safe Harbor Statement

This communication contains certain statements related to future results, or states Aon’s intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon’s operations, the uncertainty surrounding the COVID-19 pandemic, and the termination of Aon’s Business Combination Agreement with Willis Towers Watson Public Limited Company regarding the combination of the parties (the “Combination”). All statements other than statements of historical facts that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as its outlook, future capital expenditures, growth in commissions and fees, changes to the composition or level of its revenues, cash flow and liquidity, expected tax rates, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of its business and operations, plans, references to future successes, the termination of the Combination and divestitures planned in connection therewith, and pending or potential litigation relating to the Combination and divestitures planned in connection therewith, including as a result of the termination or potential termination of such transactions, are forward-looking statements. Also, when Aon uses the words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “probably”, “potential”, “looking forward”, or similar expressions, it is making forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in or anticipated by the forward-looking statements: general economic and political conditions in different countries in which Aon does business around the world, including the U.K.’s withdrawal from the European Union; changes in the competitive environment or damage to Aon’s reputation; fluctuations in exchange and interest rates that could influence revenue and expenses; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funding status of Aon’s various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon’s debt limiting financial flexibility or increasing borrowing costs; rating agency actions that could affect Aon’s ability to borrow funds; volatility in Aon’s tax rate due to a variety of different factors, including U.S. tax reform; changes in estimates or assumptions on Aon’s financial statements; limits on Aon’s subsidiaries to make dividend and other payments to Aon; the impact of lawsuits and other contingent liabilities and loss contingencies arising from errors and omissions and other claims against Aon; the impact of, and potential challenges in complying with, legislation and regulation in the jurisdictions in which Aon operates, particularly given the global scope of Aon’s businesses and the possibility of conflicting regulatory requirements across jurisdictions in which Aon does business; the impact of any investigations brought by regulatory authorities in the U.S., Ireland, the U.K. and other countries; the impact of any inquiries relating to compliance with the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws and with U.S. and non-U.S. trade sanctions regimes; failure to protect intellectual property rights or allegations that Aon infringes on the intellectual property rights of others; the effects of Irish law on Aon’s operating flexibility and the enforcement of judgments against Aon; the failure to retain and attract qualified personnel, whether as a result of the termination of the Combination or otherwise; international risks associated with Aon’s global operations; the effects of natural or man-made disasters, including the effects of COVID-19 and other health pandemics; the potential of a system or network breach or disruption resulting in operational interruption or improper disclosure of personal data; Aon’s ability to develop and implement new technology; the damage to Aon’s reputation among clients, markets or third parties; the actions taken by third parties that perform aspects of Aon’s business operations and client services; the extent to which Aon manages certain risks created in connection with the services, including fiduciary and investments, consulting, and other advisory services, among others, that Aon currently provides, or will provide in the future, to clients; Aon’s ability to continue, and the costs and the costs and risks associated with, growing, developing and integrating companies that it acquires or new lines of business; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; changes in the health care system or Aon’s relationships with insurance carriers; Aon’s ability to implement initiatives intended to yield, and the ability to achieve, cost savings; Aon’s ability to realize the expected benefits from its restructuring plan; adverse effects on the market price of Aon’s securities and/or operating results for any reason, including, without limitation, because of the failure to consummate the Combination; the failure to realize the expected benefits of the Combination (including anticipated revenue and growth synergies); significant transaction costs in connection with the terminated Combination and divestitures planned in connection with the Combination; litigation associated with the termination of the Combination and divestitures planned in connection with the Combination; the payment of the termination fee in connection with the termination of the Combination; the potential impact of the termination of the Combination on relationships, including with suppliers, customers, employees and regulators; and general economic, business and political conditions (including any epidemic, pandemic or disease outbreak, including COVID-19) that affect the Company.

Any or all of Aon’s forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon’s performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for the year ended December 31, 2020, and the quarters ended March 31, 2021, and June 30, 2021, are not necessarily indicative of results that may be expected for any future period, particularly in light of the continuing effects of the COVID-19 pandemic. Further information concerning Aon and its businesses, including factors that potentially could materially affect Aon’s financial results, is contained in Aon’s filings with the Securities and Exchange Commission (the “SEC”). See Aon’s Annual Report on Form 10-K for the year ended December 31, 2020 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, and June 30, 2021, for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.

Explanation of Non-GAAP Measures

This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United State (“U.S. GAAP”) related to organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin, and adjusted earnings per share that exclude the effects of intangible asset amortization, restructuring, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions, divestitures, transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. Currency impact is determined by translating last year’s revenue, expense, or net income at this year’s foreign exchange rates. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. Free cash flow is cash flows from operating activity less capital expenditures. The adjusted effective tax rate excludes the applicable tax impact associated with expenses for estimated intangible asset amortization, restructuring, and certain other noteworthy items, such as the change to the U.K. corporate income tax rate. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon’s Condensed Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments.

Investor Contact:		Media Contact:
Leslie Follmer		Nadine Youssef
+1 312-381-3310		+1 312-381-3024
[email protected]		[email protected]

*Aon plc* Condensed Consolidated Statements of Income (Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
*(millions, except per share data)*	2021		2020		% Change	2021		2020		% Change
Revenue
Total revenue	$	2,886	$	2,497	16%	$	6,411	$	5,716	12%
Expenses
Compensation and benefits	1,628		1,361		20%	3,347		2,883		16%
Information technology	115		107		7%	229		218		5%
Premises	76		74		3%	153		147		4%
Depreciation of fixed assets	41		41		—%	82		82		—%
Amortization of intangible assets	36		58		(38)%	76		155		(51)%
Other general expense	318		262		21%	607		604		—%
Total operating expenses	2,214		1,903		16%	4,494		4,089		10%
Operating income	672		594		13%	1,917		1,627		18%
Interest income	3		—		100%	6		2		200%
Interest expense	(78)		(89)		(12)%	(157)		(172)		(9)%
Other income (expense)⁽¹⁾	(1)		(9)		(89)%	(3)		19		(116)%
Income before income taxes	596		496		20%	1,763		1,476		19%
Income tax expense⁽²⁾	203		85		139%	437		274		59%
Net income	393		411		(4)%	1,326		1,202		10%
Less: Net income attributable to noncontrolling interests	14		13		8%	34		32		6%
Net income attributable to Aon shareholders	$	379	$	398	(5)%	$	1,292	$	1,170	10%

Basic net income per share attributable to Aon shareholders	$	1.67	$	1.71	(2)%	$	5.69	$	5.02	13%
Diluted net income per share attributable to Aon shareholders	$	1.66	$	1.70	(2)%	$	5.66	$	5.00	13%
Weighted average ordinary shares outstanding – basic	227.0		232.7		(2)%	227.0		233.0		(3)%
Weighted average ordinary shares outstanding – diluted	228.0		233.6		(2)%	228.1		234.1		(3)%

(1)	Included in Other income (expense) for the three and six months ended June 30, 2020 is $1 million and $0 million, respectively, of income that was previously classified as net income from discontinued operations. This reclassification had no net impact on Other income (expense) for the six months ended June 30, 2020.
(2)	The effective tax rate was 34.1% and 17.1% for the three months ended June 30, 2021 and 2020, respectively, and 24.8% and 18.6% for the six months ended June 30, 2021 and 2020, respectively. The effective tax rate on Net income was 17.1% for the three months ended June 30, 2020 as a result of the reclassification noted above.

*Aon plc* Reconciliation of Non-GAAP Measures – Organic Revenue Growth and Free Cash Flow (Unaudited) Organic Revenue Growth (Unaudited)

	Three Months Ended June 30,
*(millions)*	2021		2020		% Change	Less: Currency Impact ⁽¹⁾	Less: Fiduciary Investment Income ⁽²⁾	Less: Acquisitions, Divestitures & Other	Organic Revenue Growth ⁽³⁾
Revenue
Commercial Risk Solutions	$	1,349	$	1,126	20%	5%	—%	1%	14%
Reinsurance Solutions	500		448		12	1	—	2	9
Retirement Solutions	440		393		12	6	—	1	5
Health Solutions	307		258		19	5	—	—	14
Data & Analytic Services	294		274		7	4	—	(2)	5
Elimination	(4)		(2)		N/A	N/A	N/A	N/A	N/A
Total revenue	$	2,886	$	2,497	16%	4%	—%	1%	11%

	Six Months Ended June 30,
*(millions)*	2021		2020		% Change	Less: Currency Impact ⁽¹⁾	Less: Fiduciary Investment Income ⁽²⁾	Less: Acquisitions, Divestitures & Other	Organic Revenue Growth ⁽³⁾
Revenue
Commercial Risk Solutions	$	2,638	$	2,272	16%	5%	—%	(1)%	12%
Reinsurance Solutions	1,422		1,296		10	2	(1)	2	7
Retirement Solutions	874		790		11	5	—	1	5
Health Solutions	843		760		11	4	—	—	7
Data & Analytic Services	645		605		7	4	—	2	1
Elimination	(11)		(7)		N/A	N/A	N/A	N/A	N/A
Total revenue	$	6,411	$	5,716	12%	4%	—%	—%	8%

(1)	Currency impact is determined by translating last year’s revenue at this year’s foreign exchange rates.
(2)	Fiduciary investment income for the three months ended June 30, 2021 and 2020 was $2 million and $5 million, respectively. Fiduciary investment income for the six months ended June 30, 2021 and 2020 was $4 million and $20 million, respectively.
(3)	Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges.

	Free Cash Flows from Operations (Unaudited)

	Six Months Ended June 30,
*(millions)*	2021		2020		% Change
Cash Provided by Operating Activities	$	1,345	$	1,219	10%
Capital Expenditures Used for Operations	(70)		(89)		(21)%
Free Cash Flows Provided by Operations ⁽¹⁾	$	1,275	$	1,130	13%

(1)

Free cash flow is defined as cash flows from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures.

*Aon plc* Reconciliation of Non-GAAP Measures – Operating Income and Diluted Earnings Per Share (Unaudited) ⁽¹⁾

	Three Months Ended June 30,					Six Months Ended June 30,
*(millions, except percentages)*	2021		2020		% Change	2021		2020		% Change
Revenue	$	2,886	$	2,497	16%	$	6,411	$	5,716	12%

Operating income	$	672	$	594	13%	$	1,917	$	1,627	18%
Amortization and impairment of intangible assets	36		58			76		155
Transaction costs ⁽²⁾	38		18			73		36
Operating income – as adjusted	$	746	$	670	11%	$	2,066	$	1,818	14%
Operating margin	23.3%		23.8%			29.9%		28.5%
Operating margin – as adjusted	25.8%		26.8%			32.2%		31.8%

	Three Months Ended June 30,					Six Months Ended June 30,
*(millions, except percentages)*	2021		2020		% Change	2021		2020		% Change
Operating income – as adjusted	$	746	$	670	11%	$	2,066	$	1,818	14%
Interest income	3		—		100%	6		2		200%
Interest expense	(78)		(89)		(12)%	(157)		(172)		(9)%
Other income (expense):
Other income (expense) – pensions – as adjusted	8		2		300%	14		6		133%
Other income (expense) – other	(9)		(11)		18%	(17)		13		(231)%
Total Other income (expense) – as adjusted	(1)		(9)		89%	(3)		19		(116)%
Income before income taxes – as adjusted	670		572		17%	1,912		1,667		15%
Income tax expense ⁽³⁾	135		100		35%	380		312		22%
Net income – as adjusted	535		472		13%	1,532		1,355		13%
Less: Net income attributable to noncontrolling interests	14		13		8%	34		32		6%
Net income attributable to Aon shareholders – as adjusted	$	521	$	459	14%	$	1,498	$	1,323	13%
Diluted net income per share attributable to Aon shareholders – as adjusted	$	2.29	$	1.96	17%	$	6.57	$	5.65	16%
Weighted average ordinary shares outstanding – diluted	228.0		233.6		(2)%	228.1		234.1		(3)%
Effective Tax Rates ⁽³⁾
U.S. GAAP	34.1%		17.1%			24.8%		18.6%
Non-GAAP	20.1%		17.5%			19.9%		18.7%

(1)	Certain noteworthy items impacting operating income in the three and six months ended June 30, 2021 and 2020 are described in this schedule. The items shown with the caption “as adjusted” are non-GAAP measures.
(2)	As part of the terminated combination with Willis Towers Watson, certain transaction costs have been and will be incurred by the Company through the third quarter of 2021. These costs may include advisory, legal, accounting, valuation, and other professional or consulting fees related to the combination, including potential divestitures, as well as certain compensation expenses and expenses related to implementing the Aon United operating model.
(3)	Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with accelerated tradename amortization, impairment charges and certain transaction costs related to the terminated combination, which are adjusted at the related jurisdictional rate. In addition, income tax expense for the three and six months ended June 30, 2021 was adjusted to exclude the impact of remeasuring the net deferred tax liabilities in the U.K. as a result of the corporate income tax rate increase enacted in the second quarter of 2021.

*Aon plc* Condensed Consolidated Statements of Financial Position (Unaudited)

	As of
*(millions)*	June 30, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	1,091	$	884
Short-term investments	289		308
Receivables, net	3,545		3,070
Fiduciary assets ⁽¹⁾	15,804		13,798
Other current assets	547		624
Total current assets	21,276		18,684
Goodwill	8,659		8,666
Intangible assets, net	564		640
Fixed assets, net	585		599
Operating lease right-of-use assets	863		911
Deferred tax assets	738		724
Prepaid pension	1,349		1,280
Other non-current assets	546		610
Total assets	$	34,580	$	32,114

Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	1,692	$	2,016
Short-term debt and current portion of long-term debt	13		448
Fiduciary liabilities	15,804		13,798
Other current liabilities	1,418		1,171
Total current liabilities	18,927		17,433
Long-term debt	7,272		7,281
Non-current operating lease liabilities	841		897
Deferred tax liabilities	417		262
Pension, other postretirement, and postemployment liabilities	1,644		1,763
Other non-current liabilities	912		895
Total liabilities	30,013		28,531

Equity
Ordinary shares – $0.01 nominal value	2		2
Additional paid-in capital	6,381		6,312
Retained earnings	1,823		1,042
Accumulated other comprehensive loss	(3,744)		(3,861)
Total Aon shareholders’ equity	4,462		3,495
Noncontrolling interests	105		88
Total equity	4,567		3,583
Total liabilities and equity	$	34,580	$	32,114

(1)	Includes cash and short-term investments of $6,093 million and $5,681 million for the periods ended June 30, 2021 and December 31, 2020, respectively.

*Aon plc* Condensed Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended June 30,
*(millions)*	2021		2020
Cash flows from operating activities
Net income	$	1,326	$	1,202
Adjustments to reconcile net income to cash provided by operating activities:
Gain from sales of businesses, net	(1)		(25)
Depreciation of fixed assets	82		82
Amortization and impairment of intangible assets	76		155
Share-based compensation expense	216		140
Deferred income taxes	115		(15)
Change in assets and liabilities:
Fiduciary receivables	(1,620)		(1,640)
Short-term investments — funds held on behalf of clients	(386)		(622)
Fiduciary liabilities	2,006		2,262
Receivables, net	(477)		(262)
Accounts payable and accrued liabilities	(295)		(323)
Current income taxes	83		186
Pension, other postretirement and postemployment liabilities	(80)		(62)
Other assets and liabilities⁽¹⁾	300		141
Cash provided by operating activities	1,345		1,219
Cash flows from investing activities
Proceeds from investments	41		17
Payments for investments	(29)		(60)
Net sales (purchases) of short-term investments — non-fiduciary	22		(522)
Acquisition of businesses, net of cash acquired	—		(368)
Sale of businesses, net of cash sold	9		30
Capital expenditures	(70)		(89)
Cash used for investing activities	(27)		(992)
Cash flows from financing activities
Share repurchase	(292)		(463)
Issuance of shares for employee benefit plans	(140)		(157)
Issuance of debt	1,113		4,153
Repayment of debt	(1,500)		(3,547)
Cash dividends to shareholders	(219)		(204)
Noncontrolling interests and other financing activities	(84)		14
Cash used for financing activities	(1,122)		(204)
Effect of exchange rates on cash and cash equivalents	11		(56)
Net increase (decrease) in cash and cash equivalents	207		(33)
Cash and cash equivalents at beginning of period	884		790
Cash and cash equivalents at end of period	$	1,091	$	757

(1)	Included in Other assets and liabilities for the six months ended June 30, 2020 is an $82 million cash outflow previously classified as Restructuring reserves.

View original content:https://www.prnewswire.com/news-releases/aon-reports-second-quarter-2021-results-301344897.html

SOURCE Aon plc

July 30, 2021 6:03 am

Sumo Logic Announces Upcoming Conference Participation

REDWOOD CITY, Calif., July 30, 2021 (GLOBE NEWSWIRE) — Sumo Logic (Nasdaq: SUMO), the pioneer in continuous intelligence, announced today that members of its management team will present at the following investor conference:

KeyBanc Virtual Technology Conference, Wednesday, August 11 at 9:00AM Pacific Time, 12:00PM Eastern Time

A link to the webcast of this event can be accessed from the Sumo Logic Investor Relations website at http://investor.sumologic.com.

Additional Resources

About Sumo Logic

Sumo Logic Inc. (Nasdaq: SUMO) is the pioneer in continuous intelligence, a new category of software, which enables organizations of all sizes to address the data challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The Sumo Logic Continuous Intelligence Platform™ automates the collection, ingestion, and analysis of application, infrastructure, security, and IoT data to derive actionable insights within seconds. More than 2,100 customers around the world rely on Sumo Logic to build, run, and secure their modern applications and cloud infrastructures. Only Sumo Logic delivers its platform as a true, multi-tenant SaaS architecture, across multiple use-cases, enabling businesses to thrive in the Intelligence Economy. For more information, visit www.sumologic.com.

Sumo Logic is a trademark or registered trademark of Sumo Logic in the United States and in foreign countries. All other company and product names may be trademarks or registered trademarks of their respective owners.

Any information regarding offerings, updates, functionality, or other modifications, including release dates, is subject to change without notice. The development, release, and timing of any offering, update, functionality, or modification described herein remains at the sole discretion of Sumo Logic, and should not be relied upon in making a purchase decision, nor as a representation, warranty, or commitment to deliver specific offerings, updates, functionalities, or modifications in the future.

Investor Relations Contact:

Paul Thomas
Sumo Logic
[email protected]
(650) 214-3847

Media Contacts:

Melissa Liton
Sumo Logic
[email protected]
(650) 814-3882

July 30, 2021 6:03 am

Largo Resources Receives Notice to Proceed on Its Battery Sales Contract with Enel Green Power España

Largo Resources Receives Notice to Proceed on Its Battery Sales Contract with Enel Green Power España

TORONTO–(BUSINESS WIRE)–
Largo Resources Ltd. (“Largo” or the “Company“) (TSX: LGO) (NASDAQ: LGO) is pleased to announce that it has received a notice to proceed (“NTP”) on its previously announced sales contract with Enel Green Power España for the delivery of a 5 hour 6.1 MWh VCHARGE± system located in Spain.

Paulo Misk, President and CEO for Largo, stated: “We are thrilled to be working with a reputable partner such as Enel Green Power España and to starting the activities required to deliver on the contract.” He continued: “We look forward to the successful deployment of this system and to delivering additional clean energy solutions to customers in the future.”

About Largo Resources

Largo Resources is an industry preferred, vertically integrated vanadium company. It services multiple vanadium market applications through the supply of its unrivaled VPURE™ and VPURE+™ products, from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine located in Brazil. Largo is also focused on the advancement of renewable energy storage solutions through its vertically integrated VCHARGE± vanadium redox flow battery technology. The Company’s common shares are listed on the Toronto Stock Exchange and on the Nasdaq Stock Market under the symbol “LGO”.

For more information on Largo and VPURE™, please visit www.largoresources.com and www.largoVPURE.com.

For additional information on Largo Clean Energy, please visit www.largocleanenergy.com.

Forward-looking Information:

This press release contains forward-looking information under Canadian securities legislation, (“forward-looking statements”). Forward‐looking information in this press release includes, but is not limited to, statements with respect to our ability to market and sell our VCHARGE± battery system on specification and at a competitive price, the production, delivery and sale to Enel Green Power of a VCHARGE+ battery system, the design of that system, expected transaction value, future VCHARGE+ battery system sales, and the growth of the long-duration energy storage market. Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the failure to satisfy conditions in the agreement with Enel, termination of the agreement, and those risks described in the annual information form of Largo and in its public documents filed on www.sedar.com and www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As which also apply.

Trademarks are owned by Largo Resources Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005144/en/

For further information, please contact:

Investor Relations:

Alex Guthrie

Senior Manager, External Relations

[email protected]

Tel: +1 416‐861‐9797

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Alternative Energy Energy Natural Resources Mining/Minerals

MEDIA:

Logo

July 30, 2021 6:03 am

Mammoth Energy Services, Inc. Announces Second Quarter 2021 Operational and Financial Results

OKLAHOMA CITY, July 30, 2021 (GLOBE NEWSWIRE) — Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ: TUSK) today reported financial and operational results for the second quarter ended June 30, 2021.

Financial Overview for the Second Quarter 2021:

Total revenue was $47.4 million for the second quarter of 2021, as compared to $60.1 million for the same quarter last year and $66.8 million for the first quarter of 2021.

Net loss for the second quarter of 2021 was $34.8 million, or a $0.75 loss per share, as compared to a net loss of $15.2 million, or a $0.33 loss per share, for the same quarter last year, and a net loss of $12.4 million, or a $0.27 loss per share, for the first quarter of 2021.

Adjusted EBITDA (as defined and reconciled below) was ($5.5) million for the second quarter of 2021, as compared to $6.9 million for the same quarter last year and $6.4 million for the first quarter of 2021.

Arty Straehla, Chief Executive Officer of Mammoth commented, “While second quarter results did not meet expectations, internally we remain focused on improving near-term results as we continue migrating the Company further into the infrastructure space to enhance long-term growth and sustainability. In our energy businesses, improved commodities pricing is generating some positive industry movement and increased equipment utilization as we are ramping up to put a second hydraulic fracturing fleet to work in mid-August. We are also beginning to experience increased market activity in our sand business.”

“In the infrastructure space, improving macro trends related to increased project bidding levels and funding capacity in the sector persists. We continue to pursue opportunities within this sector as we strategically structure our service offerings for growth, both the geographic footprint and depth of projects.”

Straehla continued, “Lastly, we are continuing our efforts to collect our receivable from PREPA for work performed by our subsidiary Cobra in Puerto Rico. We believe that published documentation to date continues to show that our team performed a difficult job in a difficult environment to save lives and aid the people of Puerto Rico in their time of need.”

Infrastructure Services

Mammoth’s infrastructure services division contributed revenue (inclusive of inter-segment revenue) of $17.2 million, or approximately 36% of Mammoth’s total revenue, for the second quarter of 2021, as compared to $30.2 million for the same quarter last year and $29.3 million for the first quarter of 2021. The decrease in revenue compared to the same quarter of 2020 and first quarter of 2021 is primarily due to management and crew turnover.

Well Completion Services

Mammoth’s well completion services division contributed revenue (inclusive of inter-segment revenue) of $17.4 million on 520 stages for the second quarter of 2021, as compared to $16.5 million on 658 stages for the same quarter last year and $23.0 million on 445 stages for the first quarter of 2021. On average, 0.9 of the Company’s fleets were active for the second quarter, compared to an average utilization of 1.9 fleets during the same quarter last year and an average utilization of 0.9 fleets during the first quarter of 2021.

Natural Sand Proppant Services
Mammoth’s natural sand proppant services division contributed revenue (inclusive of inter-segment revenue) of $6.9 million for the second quarter of 2021, as compared to $6.2 million for the same quarter last year and $8.7 million for the first quarter of 2021. In the second quarter of 2021, the Company sold approximately 255,000 tons of sand at an average sales price of $15.80 per ton, as compared to sales of approximately 82,000 tons of sand at an average sales price of $15.18 per ton during the same quarter last year. In the first quarter of 2021, sales were approximately 171,000 tons of sand at an average price of $16.83 per ton.

Drilling Services

Mammoth’s drilling services division contributed revenue (inclusive of inter-segment revenue) of $1.1 million for the second quarter of 2021, as compared to $1.2 million for the same quarter last year and $0.9 million for the first quarter of 2021.

As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.

Other Services

Mammoth’s other services, including aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation, remote accommodations, equipment manufacturing and infrastructure engineering and design services, contributed revenue (inclusive of inter-segment revenue) of $5.5 million for the second quarter of 2021, as compared to $6.8 million for the same quarter last year and $5.7 million for the first quarter of 2021.

As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $12.0 million for the second quarter of 2021, as compared to $13.7 million for the same quarter last year and $20.8 million for the first quarter of 2021.

Following is a breakout of SG&A expense (in thousands):

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
	2021		2020		2021		2021		2020
Cash expenses:
Compensation and benefits	$	3,333	$	3,720	$	4,694	$	8,027	$	7,690
Professional services	5,806		6,147		3,405		9,211		9,684
Other^(a)	2,464		2,100		2,342		4,806		4,409
Total cash SG&A expense	11,603		11,967		10,441		22,044		21,783
Non-cash expenses:
Bad debt provision	76		1,624		10,125		10,201		1,679
Stock based compensation	304		135		282		586		1,035
Total non-cash SG&A expense	380		1,759		10,407		10,787		2,714
Total SG&A expense	$	11,983	$	13,726	$	20,848	$	32,831	$	24,497
a. Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.

SG&A expenses, as a percentage of total revenue, were 25% for the second quarter of 2021, as compared to 23% for the same quarter last year and 31% for the first quarter of 2021. The bad debt provision for the first quarter of 2021 includes $10.0 million related to the voluntary petitions for relief filed on November 13, 2020, by Gulfport Energy Corporation and its subsidiaries.

Liquidity

As of June 30, 2021, Mammoth had cash on hand of $11.0 million, outstanding borrowings under its revolving credit facility of $60.2 million and $51.1 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit. As of June 30, 2021, Mammoth had total liquidity of $62.1 million.

As of July 27, 2021, Mammoth had cash on hand of $13.7 million, outstanding borrowings under its revolving credit facility of $61.4 million and $49.8 million of available borrowing capacity under its revolving credit facility, after giving effect to $13.0 million of outstanding letters of credit.

Capital Expenditures

The following table summarizes Mammoth’s capital expenditures by operating division for the periods indicated (in thousands):

	Three Months Ended						Six Months Ended
	June 30,				March 31,		June 30,
	2021		2020		2021		2021		2020
Infrastructure services^(a)	$	104	$	43	$	189	$	293	$	43
Well completion services^(b)	388		2,450		412		800		3,054
Natural sand proppant services^(c)	5		354		408		413		875
Drilling services^(d)	1		67		37		38		67
Other^(e)	63		10		102		165		385
Total capital expenditures	$	561	$	2,924	$	1,148	$	1,709	$	4,424
a. Capital expenditures primarily for tooling and other equipment for the periods presented.
b. Capital expenditures primarily for upgrades to our pressure pumping fleet to reduce greenhouse gas emissions and water transfer equipment for the periods presented.
c. Capital expenditures primarily for maintenance for the periods presented.
d. Capital expenditures primarily for maintenance for the periods presented.
e. Capital expenditures primarily for equipment for the Company’s rental businesses for the periods presented.

Conference Call Information

Mammoth will host a conference call on Friday, July 30, 2021 at 8:00 a.m. CDT (9:00 a.m. EDT) to discuss its second quarter 2021 financial and operational results. The telephone number to access the conference call is 216-562-0385. The conference call will also be webcast live on https://ir.mammothenergy.com/events-presentations.

About Mammoth Energy Services, Inc.

Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth’s suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. For more information, please visit www.mammothenergy.com.

Contacts:

Mark Layton, CFO
Mammoth Energy Services, Inc
[email protected]

Rick Black / Ken Dennard
Dennard Lascar Investor Relations
[email protected]

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts that address activities, events or developments that Mammoth expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “plan,” “estimate,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company’s business outlook and plans, future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, costs and other guidance regarding future developments. Forward-looking statements are not assurances of future performance. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for the Company’s existing operations, experience and perception of historical trends, current conditions, anticipated future developments and their effect on Mammoth, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, the Company’s forward-looking statements are subject to significant risks and uncertainties, including those described in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings it makes with the SEC, including those relating to the Company’s acquisitions and contracts, many of which are beyond the Company’s control, which may cause actual results to differ materially from historical experience and present expectations or projections which are implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the severity and duration of the COVID-19 pandemic, related global and national health concerns and economic repercussions and the resulting negative impact on demand for our services; the volatility of oil and natural gas prices and actions by OPEC members and other exporting nations affecting commodities prices and production levels; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the failure to receive or delays in receiving governmental authorizations, approvals and/or payments; the outcome of ongoing government investigations and other legal proceedings, including those relating to the contracts awarded to the Company’s subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power Authority and contracts for our pressure pumping services and natural sand proppant services; the Company’s inability to replace the prior levels of work in its business segments, including its infrastructure and well completion services segments; risks relating to economic conditions; the loss of or interruption in operations of one or more of Mammoth’s significant suppliers or customers; the outcome or settlement of our litigation matters, including our litigation with Gulfport Energy Corporation and MasTec Renewables Puerto Rico, LLC, and the effect on our financial condition and results of operations ; the effects of government regulation, permitting and other legal requirements; operating risks; the adequacy of capital resources and liquidity; weather; natural disasters; litigation; volatility in commodity markets; competition in the oil and natural gas and infrastructure industries; and costs and availability of resources.

Investors are cautioned not to place undue reliance on any forward-looking statement which speaks only as of the date on which such statement is made. We undertake no obligation to correct, revise or update any forward-looking statement after the date such statement is made, whether as a result of new information, future events or otherwise, except as required by applicable law.

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

ASSETS	June 30,			December 31,
	2021			2020
CURRENT ASSETS	(in thousands)
Cash and cash equivalents	$	11,038		$	14,822
Short-term investment	1,757			1,750
Accounts receivable, net	413,245			393,112
Receivables from related parties, net	80			28,461
Inventories	10,212			12,020
Prepaid expenses	7,936			13,825
Other current assets	708			758
Other current assets – related parties	—			—
Total current assets	444,976			464,748

Property, plant and equipment, net	210,397			251,262
Sand reserves	65,491			65,876
Operating lease right-of-use assets	15,777			20,179
Intangible assets, net – customer relationships	321			408
Intangible assets, net – trade names	3,946			4,366
Goodwill	12,608			12,608
Deferred income tax asset	8,094			—
Other non-current assets	4,329			5,115
Total assets	$	765,939		$	824,562
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	39,505		$	40,316
Payables to related parties	4			3
Accrued expenses and other current liabilities	63,375			44,408
Current operating lease liability	7,255			8,618
Current portion of long-term debt	1,430			1,165
Income taxes payable	35,198			34,088
Total current liabilities	146,767			128,598

Long-term debt, net of current portion	62,811			81,338
Deferred income tax liabilities	12,041			24,741
Long-term operating lease liability	8,293			11,377
Asset retirement obligation	3,666			4,746
Other liabilities	15,159			10,435
Total liabilities	248,737			261,235

COMMITMENTS AND CONTINGENCIES

EQUITY
Equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 46,680,731 and 45,769,283 issued and outstanding at June 30, 2021 and December 31, 2020	467			458
Additional paid in capital	537,728			537,039
Retained earnings	(18,335		)	28,895
Accumulated other comprehensive loss	(2,658		)	(3,065		)
Total equity	517,202			563,327
Total liabilities and equity	$	765,939		$	824,562

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
	2021			2020			2021			2021			2020
	(in thousands, except per share amounts)
REVENUE
Services revenue	$	40,867		$	44,878		$	42,691		$	83,558		$	113,723
Services revenue – related parties	90			8,650			14,986			15,076			26,663
Product revenue	6,483			4,706			6,982			13,465			13,356
Product revenue – related parties	—			1,875			2,145			2,145			3,750
Total revenue	47,440			60,109			66,804			114,244			157,492

COST AND EXPENSES
Services cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $17,861, $21,750, $18,989, $36,850 and $45,305, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)	43,103			42,255			42,062			85,165			112,952
Services cost of revenue – related parties (exclusive of depreciation, depletion, amortization and accretion of $0, $0, $0, $0 and $0, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)	107			97			109			216			198
Product cost of revenue (exclusive of depreciation, depletion, amortization and accretion of $2,384, $2,346, $2,137, $4,521 and $4,654, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020)	7,165			6,401			5,909			13,074			17,509
Selling, general and administrative	11,791			13,528			20,655			32,446			24,084
Selling, general and administrative – related parties	192			198			193			385			413
Depreciation, depletion, amortization and accretion	20,265			24,116			21,146			41,411			49,998
Impairment of goodwill	—			—			—			—			54,973
Impairment of other long-lived assets	—			—			—			—			12,897
Total cost and expenses	82,623			86,595			90,074			172,697			273,024
Operating loss	(35,183		)	(26,486		)	(23,270		)	(58,453		)	(115,532		)

OTHER INCOME (EXPENSE)
Interest expense, net	(1,169		)	(1,471		)	(1,225		)	(2,394		)	(3,109		)
Other (expense) income, net	(14,998		)	8,137			9,947			(5,051		)	15,546
Other (expense) income, net – related parties	—			1,133			(515		)	(515		)	1,133
Total other (expense) income	(16,167		)	7,799			8,207			(7,960		)	13,570
Loss before income taxes	(51,350		)	(18,687		)	(15,063		)	(66,413		)	(101,962		)
Benefit for income taxes	(16,560		)	(3,482		)	(2,623		)	(19,183		)	(2,786		)
Net loss	$	(34,790	)	$	(15,205	)	$	(12,440	)	$	(47,230	)	$	(99,176	)

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, net of tax of $63, ($150), ($42), $680 and $211, respectively, for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021 and six months ended June 30, 2021 and 2020	239			668			168			407			(746		)
Comprehensive loss	$	(34,551	)	$	(14,537	)	$	(12,272	)	$	(46,823	)	$	(99,922	)

Net loss per share (basic)	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(2.18	)
Net loss per share (diluted)	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(2.18	)
Weighted average number of shares outstanding (basic)	46,402			45,727			45,932			46,168			45,521
Weighted average number of shares outstanding (diluted)	46,402			45,727			45,932			46,168			45,521

MAMMOTH ENERGY SERVICES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended
	June 30,
	2021			2020
	(in thousands)
Cash flows from operating activities:
Net loss	$	(47,230	)	$	(99,176	)
Adjustments to reconcile net loss to cash provided by operating activities:
Stock based compensation	698			1,246
Depreciation, depletion, accretion and amortization	41,411			49,998
Amortization of coil tubing strings	—			359
Amortization of debt origination costs	296			577
Bad debt expense	10,201			1,679
Gain on disposal of property and equipment	(1,599		)	(1,451		)
Impairment of goodwill	—			54,973
Impairment of other long-lived assets	—			12,897
Deferred income taxes	(20,898		)	931
Other	548			623
Changes in assets and liabilities:
Accounts receivable, net	(30,386		)	7,782
Receivables from related parties	28,381			(19,793		)
Inventories	1,808			4,651
Prepaid expenses and other assets	5,923			6,079
Accounts payable	(1,546		)	(7,514		)
Payables to related parties	1			(512		)
Accrued expenses and other liabilities	15,756			(2,818		)
Income taxes payable	1,107			(3,697		)
Net cash provided by operating activities	4,471			6,834

Cash flows from investing activities:
Purchases of property and equipment	(1,709		)	(4,348		)
Purchases of property and equipment from related parties	—			(76		)
Proceeds from disposal of property and equipment	4,632			2,544
Net cash provided by (used in) investing activities	2,923			(1,880		)

Cash flows from financing activities:
Borrowings on long-term debt	12,000			22,800
Repayments of long-term debt	(30,269		)	(13,550		)
Proceeds from sale leaseback transaction	9,473			—
Payments on sale leaseback transaction	(1,278		)	—
Principal payments on financing leases and equipment financing notes	(1,140		)	(914		)
Debt issuance costs	—			(1,000		)
Net cash (used in) provided by financing activities	(11,214		)	7,336
Effect of foreign exchange rate on cash	36			(137		)
Net change in cash and cash equivalents	(3,784		)	12,153
Cash and cash equivalents at beginning of period	14,822			5,872
Cash and cash equivalents at end of period	$	11,038		$	18,025

Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,134		$	2,683
Cash paid (recovered) for income taxes	$	964		$	(6	)
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable	$	2,035		$	2,780

MAMMOTH ENERGY SERVICES, INC.

SEGMENT INCOME STATEMENTS
(in thousands)

Three months ended June 30, 2021	Infrastructure			Well Completion ^(a)			Sand			Drilling			All Other			Eliminations			Total
Revenue from external customers	$	17,220		$	17,337		$	6,886		$	1,130		$	4,867		$	—		$	47,440
Intersegment revenues	—			36			—			17			682			(735		)	—
Total revenue	17,220			17,373			6,886			1,147			5,549			(735		)	47,440
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	19,881			16,396			7,400			1,568			5,130			—			50,375
Intersegment cost of revenues	50			666			—			—			19			(735		)	—
Total cost of revenue	19,931			17,062			7,400			1,568			5,149			(735		)	50,375
Selling, general and administrative	7,383			1,893			991			395			1,321			—			11,983
Depreciation, depletion, amortization and accretion	5,899			6,447			2,387			2,079			3,453			—			20,265
Operating loss	(15,993		)	(8,029		)	(3,892		)	(2,895		)	(4,374		)	—			(35,183		)
Interest expense, net	656			219			90			58			146			—			1,169
Other expense (income), net	15,904			1			(53		)	(127		)	(727		)	—			14,998
Loss before income taxes	$	(32,553	)	$	(8,249	)	$	(3,929	)	$	(2,826	)	$	(3,793	)	$	—		$	(51,350	)

Three months ended June 30, 2020	Infrastructure			Well Completion ^(a)			Sand			Drilling			All Other			Eliminations			Total
Revenue from external customers	$	30,249		$	16,125		$	6,237		$	1,250		$	6,248		$	—		$	60,109
Intersegment revenues	—			419			—			—			584			(1,003		)	—
Total revenue	30,249			16,544			6,237			1,250			6,832			(1,003		)	60,109
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	25,217			8,375			6,394			2,012			6,755			—			48,753
Intersegment cost of revenues	27			333			—			21			622			(1,003		)	—
Total cost of revenue	25,244			8,708			6,394			2,033			7,377			(1,003		)	48,753
Selling, general and administrative	7,830			1,456			1,378			1,331			1,731			—			13,726
Depreciation, depletion, amortization and accretion	7,500			7,675			2,358			2,671			3,912			—			24,116
Operating loss	(10,325		)	(1,295		)	(3,893		)	(4,785		)	(6,188		)	—			(26,486		)
Interest expense, net	716			329			69			132			225			—			1,471
Other (income) expense, net	(8,004		)	(1,179		)	(2		)	(298		)	213			—			(9,270		)
Loss before income taxes	$	(3,037	)	$	(445	)	$	(3,960	)	$	(4,619	)	$	(6,626	)	$	—		$	(18,687	)

Three months ended March 31, 2021	Infrastructure			Well Completion ^(a)			Sand			Drilling			All Other			Eliminations			Total
Revenue from external customers	$	29,257		$	22,901		$	8,705		$	919		$	5,022		$	—		$	66,804
Intersegment revenues	—			54			—			14			640			(708		)	—
Total revenue	29,257			22,955			8,705			933			5,662			(708		)	66,804
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	26,458			9,003			5,862			1,604			5,153			—			48,080
Intersegment cost of revenues	45			394			—			—			269			(708		)	—
Total cost of revenue	26,503			9,397			5,862			1,604			5,422			(708		)	48,080
Selling, general and administrative	6,253			10,612			2,049			422			1,512			—			20,848
Depreciation, depletion, amortization and accretion	6,667			6,683			2,140			2,165			3,491			—			21,146
Operating loss	(10,166		)	(3,737		)	(1,346		)	(3,258		)	(4,763		)	—			(23,270		)
Interest expense, net	661			254			93			63			154			—			1,225
Other (income) expense, net	(9,310		)	439			(794		)	(9		)	242			—			(9,432		)
Loss before income taxes	$	(1,517	)	$	(4,430	)	$	(645	)	$	(3,312	)	$	(5,159	)	$	—		$	(15,063	)

MAMMOTH ENERGY SERVICES, INC.

SEGMENT INCOME STATEMENTS
(in thousands)

Six months ended June 30, 2021	Infrastructure			Well Completion ^(a)			Sand			Drilling			All Other			Eliminations			Total
Revenue from external customers	$	46,476		$	40,238		$	15,592		$	2,049		$	9,889		$	—		$	114,244
Intersegment revenues	—			90			—			31			1,322			(1,443		)	—
Total revenue	46,476			40,328			15,592			2,080			11,211			(1,443		)	114,244
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	46,340			25,399			13,262			3,173			10,281			—			98,455
Intersegment cost of revenues	95			1,060			—			—			288			(1,443		)	—
Total cost of revenue	46,435			26,459			13,262			3,173			10,569			(1,443		)	98,455
Selling, general and administrative	13,635			12,505			3,040			818			2,833			—			32,831
Depreciation, depletion, amortization and accretion	12,566			13,130			4,527			4,242			6,946			—			41,411
Operating loss	(26,160		)	(11,766		)	(5,237		)	(6,153		)	(9,137		)	—			(58,453		)
Interest expense, net	1,317			473			183			121			300			—			2,394
Other expense (income), net	6,593			440			(847		)	(135		)	(485		)	—			5,566
Loss before income taxes	$	(34,070	)	$	(12,679	)	$	(4,573	)	$	(6,139	)	$	(8,952	)	$	—		$	(66,413	)

Six months ended June 30, 2020	Infrastructure			Well Completion ^(a)			Sand			Drilling			All Other			Eliminations			Total
Revenue from external customers	$	55,724		$	58,811		$	16,391		$	5,973		$	20,593		$	—		$	157,492
Intersegment revenues	—			1,052			95			5			1,360			(2,512		)	—
Total revenue	55,724			59,863			16,486			5,978			21,953			(2,512		)	157,492
Cost of revenue, exclusive of depreciation, depletion, amortization and accretion	51,897			33,943			17,691			7,637			19,491			—			130,659
Intersegment cost of revenues	35			961			—			152			1,364			(2,512		)	—
Total cost of revenue	51,932			34,904			17,691			7,789			20,855			(2,512		)	130,659
Selling, general and administrative	11,774			3,627			2,680			2,394			4,022			—			24,497
Depreciation, depletion, amortization and accretion	15,122			16,157			4,681			5,520			8,518			—			49,998
Impairment of goodwill	—			53,406			—			—			1,567			—			54,973
Impairment of other long-lived assets	—			4,203			—			326			8,368			—			12,897
Operating loss	(23,104		)	(52,434		)	(8,566		)	(10,051		)	(21,377		)	—			(115,532		)
Interest expense, net	1,467			605			147			389			501			—			3,109
Other (income) expense, net	(15,707		)	(1,288		)	(39		)	(271		)	626			—			(16,679		)
Loss before income taxes	$	(8,864	)	$	(51,751	)	$	(8,674	)	$	(10,169	)	$	(22,504	)	$	—		$	(101,962	)
a. Mammoth changed the name of its pressure pumping segment to the well completion segment during the fourth quarter of 2020.

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s financial statements, such as industry analysts, investors, lenders and rating agencies. Mammoth defines Adjusted EBITDA as net income (loss) before depreciation, depletion, amortization and accretion expense, impairment of goodwill, impairment of other long-lived assets, public offering costs, stock based compensation, interest expense, net, other (income) expense, net (which is comprised of the (gain) or loss on disposal of long-lived assets and interest on trade accounts receivable) and provision (benefit) for income taxes, further adjusted to add back interest on trade accounts receivable. The Company excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the energy service industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) or cash flows from operating activities as determined in accordance with GAAP or as an indicator of Mammoth’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. Mammoth’s computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company believes that Adjusted EBITDA is a widely followed measure of operating performance and may also be used by investors to measure its ability to meet debt service requirements.

The following tables provide a reconciliation of Adjusted EBITDA to the GAAP financial measure of net income (loss) on a consolidated basis and for each of the Company’s segments (in thousands):

Consolidated

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net loss:	2021			2020			2021			2021			2020
Net loss	$	(34,790	)	$	(15,205	)	$	(12,440	)	$	(47,230	)	$	(99,176	)
Depreciation, depletion, amortization and accretion expense	20,265			24,116			21,146			41,411			49,998
Impairment of goodwill	—			—			—			—			54,973
Impairment of other long-lived assets	—			—			—			—			12,897
Public offering costs	77			—			—			77			—
Stock based compensation	354			196			344			698			1,246
Interest expense, net	1,169			1,471			1,225			2,394			3,109
Other expense (income), net	14,998			(9,270		)	(9,432		)	5,566			(16,679		)
Benefit for income taxes	(16,560		)	(3,482		)	(2,623		)	(19,183		)	(2,786		)
Interest on trade accounts receivable	9,017			9,071			8,158			17,175			16,767
Adjusted EBITDA	$	(5,470	)	$	6,897		$	6,378		$	908		$	20,349

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Infrastructure Services

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net loss:	2021			2020			2021			2021			2020
Net loss	$	(23,715	)	$	(3,985	)	$	(3,945	)	$	(27,658	)	$	(12,303	)
Depreciation and amortization expense	5,899			7,500			6,667			12,566			15,122
Public offering costs	43			—			—			43			—
Stock based compensation	158			44			135			293			286
Interest expense	656			716			661			1,317			1,467
Other expense (income), net	15,904			(8,004		)	(9,310		)	6,593			(15,707		)
(Benefit) provision for income taxes	(8,838		)	949			2,428			(6,410		)	3,440
Interest on trade accounts receivable	9,017			7,930			8,673			17,690			15,626
Adjusted EBITDA	$	(876	)	$	5,150		$	5,309		$	4,434		$	7,931

Well Completion Services

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net loss:	2021			2020			2021			2021			2020
Net loss	$	(8,249	)	$	(446	)	$	(4,430	)	$	(12,680	)	$	(51,750	)
Depreciation and amortization expense	6,447			7,675			6,683			13,130			16,157
Impairment of goodwill	—			—			—			—			53,406
Impairment of other long-lived assets	—			—			—			—			4,203
Public offering costs	12			—			—			12			—
Stock based compensation	75			53			83			158			381
Interest expense	219			329			254			473			605
Other expense (income), net	1			(1,179		)	439			440			(1,288		)
Interest on trade accounts receivable	—			1,133			(514		)	(514		)	1,133
Adjusted EBITDA	$	(1,495	)	$	7,565		$	2,515		$	1,019		$	22,847

Natural Sand Proppant Services

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net loss:	2021			2020			2021			2021			2020
Net loss	$	(3,929	)	$	(3,960	)	$	(645	)	$	(4,573	)	$	(8,676	)
Depreciation, depletion, amortization and accretion expense	2,387			2,358			2,140			4,527			4,681
Public offering costs	12			—						12			—
Stock based compensation	65			46			64			130			278
Interest expense	90			69			93			183			147
Other income, net	(53		)	(2		)	(794		)	(847		)	(39		)
Interest on trade accounts receivable	—			—			(1		)	(1		)	—
Adjusted EBITDA	$	(1,428	)	$	(1,489	)	$	857		$	(569	)	$	(3,609	)

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Drilling Services

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net loss:	2021			2020			2021			2021			2020
Net loss	$	(2,826	)	$	(4,620	)	$	(3,312	)	$	(6,139	)	$	(10,169	)
Depreciation expense	2,079			2,671			2,165			4,242			5,520
Impairment of other long-lived assets	—			—			—			—			326
Acquisition related costs	—			—			—			—			—
Public offering costs	2			—						2			—
Stock based compensation	28			34			38			65			128
Interest expense	58			132			63			121			389.172
Other income, net	(127		)	(298		)	(9		)	(135		)	(271		)
Adjusted EBITDA	$	(786	)	$	(2,081	)	$	(1,055	)	$	(1,844	)	$	(4,077	)

Other Services
^(a)

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
Reconciliation of Adjusted EBITDA to net income (loss):	2021			2020			2021			2021			2020
Net income (loss)	$	3,929		$	(2,195	)	$	(108	)	$	3,820		$	(16,279	)
Depreciation, amortization and accretion expense	3,453			3,912			3,491			6,946			8,518
Impairment of goodwill	—			—			—			—			1,567
Impairment of other long-lived assets	—			—			—			—			8,368
Public offering costs	8			—						8			—
Stock based compensation	28			20			24			52			173
Interest expense, net	146			225			154			300			501
Other (income) expense, net	(727		)	213			242			(485		)	626
Benefit for income taxes	(7,722		)	(4,430		)	(5,051		)	(12,773		)	(6,226		)
Interest on trade accounts receivable	—			9			—			—			9
Adjusted EBITDA	$	(885	)	$	(2,246	)	$	(1,248	)	$	(2,132	)	$	(2,743	)
a. Includes results for Mammoth’s aviation, coil tubing, pressure control, equipment rentals, crude oil hauling, full service transportation and remote accommodations, equipment manufacturing and infrastructure engineering and design services and corporate related activities. The Company’s corporate related activities do not generate revenue.

MAMMOTH ENERGY SERVICES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Adjusted Net Loss and Adjusted Loss per Share

Adjusted net loss and adjusted basic and diluted loss per share are supplemental non-GAAP financial measures that are used by management to evaluate the Company’s operating and financial performance. Management believes these measures provide meaningful information about the Company’s performance by excluding certain non-cash charges, such as impairment of goodwill and impairment of other long-lived assets, that may not be indicative of the Company’s ongoing operating results. Adjusted net loss and adjusted loss per share should not be considered in isolation or as a substitute for net loss and loss per share prepared in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following tables provide a reconciliation of adjusted net loss and adjusted loss per share to the GAAP financial measures of net loss and loss per share for the periods specified.

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
	2021			2020			2021			2021			2020
	(in thousands, except per share amounts)
Net loss, as reported	$	(34,790	)	$	(15,205	)	$	(12,440	)	$	(47,230	)	$	(99,176	)
Impairment of goodwill	—			—			—			—			54,973
Impairment of other long-lived assets	—			—			—			—			12,897
Adjusted net loss	$	(34,790	)	$	(15,205	)	$	(12,440	)	$	(47,230	)	$	(31,306	)

Basic loss per share, as reported	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(2.18	)
Impairment of goodwill	—			—			—			—			1.21
Impairment of other long-lived assets	—			—			—			—			0.28
Adjusted basic loss per share	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(0.69	)

Diluted loss per share, as reported	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(2.18	)
Impairment of goodwill	—			—			—			—			1.21
Impairment of other long-lived assets	—			—			—			—			0.28
Adjusted diluted loss per share	$	(0.75	)	$	(0.33	)	$	(0.27	)	$	(1.02	)	$	(0.69	)

July 30, 2021 6:03 am

Ares Commercial Real Estate Corporation Reports Second Quarter 2021 Results

Ares Commercial Real Estate Corporation Reports Second Quarter 2021 Results

Second quarter GAAP net income of $17.6 million or $0.43 per diluted common share and Distributable Earnings⁽¹⁾of $15.1 million or $0.37 per diluted common share

Closed $311 million of new loan commitments

– Subsequent to end of second quarter –

Declared third quarter 2021 dividend of $0.33 per diluted common share and a supplemental dividend of $0.02 per diluted common share

Closed $254 million of new loan commitments

NEW YORK–(BUSINESS WIRE)–
Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company engaged in originating and investing in commercial real estate assets, reported generally accepted accounting principles (“GAAP”) net income of $17.6 million or $0.43 per diluted common share and Distributable Earnings⁽¹⁾of $15.1 million or $0.37 per diluted common share for the second quarter of 2021.

“We reported another strong quarter with Distributable Earnings per share up 16% versus the same period a year ago,” said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation. “With our broad market coverage and increased capital base, we are in a strong position to invest given our growing pipeline of attractive opportunities. During the second quarter, we closed $311 million of commitments and, subsequent to the end of the quarter, another $254 million of commitments in July.”

“Our senior-oriented portfolio continues to perform well with recovering real estate market fundamentals leading to a corresponding lift in our weighted average portfolio risk rating,” said Tae-Sik Yoon, Chief Financial Officer of Ares Commercial Real Estate Corporation. “In addition, as we continue to see further reductions in our CECL reserve due to improvements in our overall loan performance and market environment outlook, combined with the accretive impact of our recent common share offering, our book value per share has now increased for the fourth consecutive quarter.”

_________________________________

(1) Beginning in the fourth quarter of 2020, the non-GAAP financial measure of Core Earnings was renamed to Distributable Earnings. Refer to Schedule I for the definition and reconciliation of Distributable Earnings.

COMMON STOCK DIVIDEND

On May 4, 2021, the Company declared a regular cash dividend of $0.33 per common share and a supplemental cash dividend of $0.02 per common share for the second quarter of 2021. The second quarter 2021 dividend and supplemental cash dividend were paid on July 15, 2021 to common stockholders of record as of June 30, 2021. On July 30, 2021, the Company declared a regular cash dividend of $0.33 per common share and a supplemental cash dividend of $0.02 per common share for the third quarter of 2021. The third quarter 2021 dividend and supplemental cash dividend will be payable on October 15, 2021 to common stockholders of record as of September 30, 2021.

ADDITIONAL INFORMATION

The Company issued a presentation of its second quarter 2021 results, which can be viewed at www.arescre.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “Second Quarter 2021 Earnings Presentation.” The Company also filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 with the U.S. Securities and Exchange Commission on July 30, 2021.

CONFERENCE CALL AND WEBCAST INFORMATION

On Friday, July 30, 2021, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its second quarter 2021 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company’s website at http://www.arescre.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (888) 317-6003. International callers can access the conference call by dialing +1 (412) 317-6061. All callers will need to enter the Participant Elite Entry Number 9261682 followed by the # sign and reference “Ares Commercial Real Estate Corporation” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through August 13, 2021 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference number 10156566. An archived replay will also be available through August 13, 2021 on a webcast link located on the Home page of the Investor Resources section of the Company’s website.

ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast / conference call may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which relate to future events or the Company’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepayments on the Company’s mortgage loans, availability of investment opportunities, the Company’s ability to originate additional investments and completion of pending investments, the availability of capital, the availability and cost of financing, market trends and conditions in the Company’s industry and the general economy, the level of lending and borrowing spreads and interest rates, commercial real estate loan volumes, the impact of the COVID-19 pandemic and the pandemic’s impact on the U.S. and global economy, the Company’s ability to pay future dividends at historical levels or at all, and the risks described from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, filed with the SEC on February 18, 2021 and the risk factors described in Part II, Item 1A. Risk Factors in the Company’s Quarterly Report on Form 10-Q, filed with the SEC on July 30, 2021. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management’s good faith and reasonable assumptions, including the assumptions described herein.

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)
	As of
	June 30, 2021		December 31, 2020
	(unaudited)
ASSETS
Cash and cash equivalents	$	75,671	$	74,776
Loans held for investment ($1,118,269 and $550,590 related to consolidated VIEs, respectively)	2,032,408		1,815,219
Current expected credit loss reserve	(16,893)		(23,604)
Loans held for investment, net of current expected credit loss reserve	2,015,515		1,791,615
Real estate owned, net	36,860		37,283
Other assets ($2,467 and $1,079 of interest receivable related to consolidated VIEs, respectively; $105,990 and $6,410 of other receivables related to consolidated VIEs, respectively)	128,789		25,823
Total assets	$	2,256,835	$	1,929,497
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Secured funding agreements	$	404,205	$	755,552
Notes payable	43,976		61,837
Secured term loan	60,000		110,000
Collateralized loan obligation securitization debt (consolidated VIEs)	979,777		443,871
Secured borrowings	59,902		59,790
Due to affiliate	3,731		3,150
Dividends payable	16,528		11,124
Other liabilities ($599 and $391 of interest payable related to consolidated VIEs, respectively)	9,679		11,158
Total liabilities	1,577,798		1,456,482
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at June 30, 2021 and December 31, 2020 and 47,001,121 and 33,442,332 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	464		329
Additional paid-in capital	700,994		497,803
Accumulated other comprehensive income	117		—
Accumulated earnings (deficit)	(22,538)		(25,117)
Total stockholders’ equity	679,037		473,015
Total liabilities and stockholders’ equity	$	2,256,835	$	1,929,497

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)
	For the three months ended June 30,				For the six months ended June 30,
	2021		2020		2021		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue:
Interest income	$	30,859	$	29,835	$	61,564	$	61,283
Interest expense	(11,092)		(13,042)		(23,231)		(28,576)
Net interest margin	19,767		16,793		38,333		32,707
Revenue from real estate owned	3,764		1,189		6,421		6,409
Total revenue	23,531		17,982		44,754		39,116
Expenses:
Management and incentive fees to affiliate	2,951		2,152		5,518		3,924
Professional fees	615		660		1,400		1,563
General and administrative expenses	1,195		959		2,351		1,827
General and administrative expenses reimbursed to affiliate	788		1,038		1,540		2,089
Expenses from real estate owned	3,842		3,254		7,120		9,930
Total expenses	9,391		8,063		17,929		19,333
Provision for current expected credit losses	(3,883)		(4,007)		(7,123)		23,111
Unrealized losses on loans held for sale	—		3,998		—		3,998
Income (loss) before income taxes	18,023		9,928		33,948		(7,326)
Income tax expense, including excise tax	408		160		593		169
Net income (loss) attributable to common stockholders	$	17,615	$	9,768	$	33,355	$	(7,495)
Earnings (loss) per common share:
Basic earnings (loss) per common share	$	0.43	$	0.29	$	0.88	$	(0.23)
Diluted earnings (loss) per common share	$	0.43	$	0.29	$	0.88	$	(0.23)
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding	41,009,175		33,316,933		37,731,317		32,607,442
Diluted weighted average shares of common stock outstanding	41,294,597		33,539,580		38,025,933		32,607,442
Dividends declared per share of common stock⁽¹⁾	$	0.35	$	0.33	$	0.70	$	0.66

(1) There is no assurance dividends will continue at these levels or at all.

SCHEDULE I

Reconciliation of Net Income to Non-GAAP Distributable Earnings

Beginning in the fourth quarter of 2020, the non-GAAP financial measure of Core Earnings was renamed to Distributable Earnings to more appropriately reflect the principal purpose of the measure. Distributable Earnings helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company’s REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings provides useful information to investors regarding the Company’s ability to pay dividends, which is one of the principal reasons investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings is defined as net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager (Ares Commercial Real Estate Management LLC), depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company’s manager and the Company’s independent directors and after approval by a majority of the Company’s independent directors. Loan balances that are deemed to be uncollectible are written off as a realized loss and are included in Distributable Earnings. Distributable Earnings is aligned with the calculation of “Core Earnings,” which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.

Reconciliation of net income attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings is set forth in the table below for the three and twelve months ended June 30, 2021 ($ in thousands):

	For the three months ended June 30, 2021		For the twelve months ended June 30, 2021
Net income attributable to common stockholders	$	17,615	$	62,689
Stock-based compensation	497		1,767
Incentive fees to affiliate	693		1,884
Depreciation of real estate owned	225		897
Provision for current expected credit losses	(3,883)		(10,048)
Change in unrealized losses on loans held for sale	—		(3,998)
Distributable Earnings	$	15,147	$	53,191

Net income attributable to common stockholders	$	0.43	$	1.76
Stock-based compensation	0.01		0.05
Incentive fees to affiliate	0.02		0.05
Depreciation of real estate owned	0.01		0.03
Provision for current expected credit losses	(0.09)		(0.28)
Change in unrealized losses on loans held for sale	—		(0.11)
Basic Distributable Earnings per common share	$	0.37	$	1.50

Net income attributable to common stockholders	$	0.43	$	1.75
Stock-based compensation	0.01		0.05
Incentive fees to affiliate	0.02		0.05
Depreciation of real estate owned	0.01		0.03
Provision for current expected credit losses	(0.09)		(0.28)
Change in unrealized losses on loans held for sale	—		(0.11)
Diluted Distributable Earnings per common share	$	0.37	$	1.49

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005142/en/

INVESTOR RELATIONS

Ares Commercial Real Estate Corporation

Carl Drake or John Stilmar

(888) 818-5298

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Professional Services Other Professional Services Other Construction & Property Commercial Building & Real Estate Finance Construction & Property

MEDIA:

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July 30, 2021 6:03 am

Itaú Corpbanca Announces Second Quarter 2021 Management Discussion & Analysis Report

SANTIAGO, Chile, July 30, 2021 (GLOBE NEWSWIRE) — ITAÚ CORPBANCA (NYSE: ITCB; SSE: ITAUCORP) announced today its Management Discussion & Analysis Report (“MD&A Report”) for the second quarter ended June 30, 2021. For the full MD&A Report, please refer to the following link:

https://ir.itau.cl/files/doc_financials/2021/q2/Itaú-CorpBanca-2Q21-MD-A.pdf

On Monday, August 2, 2021, at 11:00 A.M. Santiago time (11:00 A.M. ET), the Company’s management team will host a conference call to discuss the financial results. The call will be hosted by Gabriel Moura, Itaú Corpbanca’s Chief Executive Officer, Rodrigo Couto, Itaú Corpbanca’s Chief Financial Officer and Claudia Labbé, Itaú Corpbanca’s Head of Investor Relations.

Conference Call Details:

Online registration: http://www.directeventreg.com/registration/event/1980768

Phone registration: +1 (800) 585-8367 or +1 (416) 621-4642

Upon registering, each participant will be provided with call details and a registrant ID used to track attendance on the conference call (Access Code: 1980768#). Reminders will also be sent to registered participants via email. Please provide this registration information to those participants that you would like to attend your conference call.

Telephone and Virtual Q&A session:

Telephone Q&A session will be available as well as written Q&A through a box on the console, where attendees can type in their questions. We will read and answer selected questions verbally.

Slides and Audio Webcast:

There will also be a live, and then archived, webcast of the conference call, available through the Company’s website. Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. The webcast can be found at:

https://event.on24.com/wcc/r/3190605/DC0B3B48B840850B2484628E038A56F3

Webcast will be available on-demand via the same address as the live event afterwards.

About Itaú Corpbanca

ITAÚ CORPBANCA (NYSE: ITCB; SSE: ITAUCORP) is the entity resulting from the merger of Banco Itaú Chile with and into Corpbanca on April 1, 2016. The current ownership structure is: 39.22% owned by Itaú Unibanco, 27.16% owned by the Saieh Family and 33.29% owned by minority shareholders. Itaú Unibanco is the sole controlling shareholder of the merged bank. Within this context and without limiting the above, Itaú Unibanco and CorpGroup have signed a shareholders’ agreement relating to corporate governance, dividend policy (based on performance and capital metrics), transfer of shares, liquidity and other matters.

The bank is the fifth largest private bank in Chile and as per its mandate is the banking platform for future expansion in Latin America, specifically in Chile, Colombia and Peru. Itaú Corpbanca is a commercial bank based in Chile with additional operations in Colombia and Panama. In addition, Itaú Corpbanca has a branch in New York and a representative office in Lima. Focused on large and medium sized companies and individuals, Itaú Corpbanca offers universal banking products. In 2012, the bank initiated a regionalization process and as of the date hereof has acquired two banks in Colombia ‒Banco Corpbanca Colombia and Helm Bank‒ becoming the first Chilean bank with banking subsidiaries abroad. The merger with Banco Itaú Chile and the business combination of our two banks in Colombia, represent the continued success of our regionalization process.

As of May 31, 2021, according to the Chilean Financial Market Commission, Itaú Corpbanca was the fifth largest private bank in Chile in terms of the overall size of its customer loan portfolio, equivalent to 9.8% market share. As the same date, according to the Colombian Superintendency of Finance, Itaú Corpbanca Colombia was the eighth largest bank in Colombia in terms of total loans and tenth in terms of total deposits, as reported under local regulatory and accounting principles. As of April 30, 2020, its market share by loans reached 4.0%.

Investor Relations – Itaú Corpbanca
+56 (2) 2660-1701 / [email protected] / ir.itau.cl

July 30, 2021 6:03 am

Chevron Announces Second Quarter 2021 Results

Chevron Announces Second Quarter 2021 Results

Earnings of $3.1 billion; adjusted earnings of $3.3 billion
Cash flow from operations of $7.0 billion; free cash flow of $5.2 billion
Resuming share repurchases, targeted at $2-3 billion per year

SAN RAMON, Calif.–(BUSINESS WIRE)–
Chevron Corporation (NYSE: CVX) today reported earnings of $3.1 billion ($1.60 per share – diluted) for second quarter 2021, compared with a loss of $8.3 billion ($(4.44) per share – diluted) in second quarter 2020. Included in the current quarter were remediation charges associated with previously sold assets of $120 million and pension settlement costs of $115 million. Foreign currency effects increased earnings by $43 million. Adjusted earnings of $3.3 billion ($1.71 per share – diluted) in second quarter 2021 compares to an adjusted loss of $2.9 billion ($(1.56) per share – diluted) in second quarter 2020. For a reconciliation of adjusted earnings/(loss), see Attachment 5.

Sales and other operating revenues in second quarter 2021 were $36 billion, compared to $16 billion in the year-ago period.

Earnings Summary

		Three Months Ended June 30			Six Months Ended June 30
Millions of dollars		2021	2020		2021	2020
Earnings by business segment
Upstream	$3,178		$(6,089)	$5,528		$(3,169)
Downstream	839		(1,010)	844		93
All Other	(935)		(1,171)	(1,913)		(1,595)
Total ⁽¹⁾⁽²⁾	$3,082		$(8,270)	$4,459		$(4,671)
⁽¹⁾ Includes foreign currency effects		$43	$(437)		$41	$77
⁽²⁾ Net income attributable to Chevron Corporation (See Attachment 1)

“Second quarter earnings were strong, reflecting improved market conditions, combined with transformation benefits and merger synergies,” said Mike Wirth, Chevron’s chairman and chief executive officer.

“Our free cash flow was the highest in two years due to solid operational and financial performance and lower capital spending,” Wirth added. “We will resume share repurchases in the third quarter at an expected rate of $2-3 billion per year.”

Chevron continued to exercise capital discipline with year-to-date capital spending down 32 percent from a year ago. The company recently sanctioned the Jansz-lo Compression project in Australia, which is expected to maintain an important source of clean-burning natural gas. GS Caltex, a 50 percent owned equity affiliate, also started up an olefins mixed-feed cracker and associated polyethylene unit at its Yeosu, South Korea refinery ahead of schedule and under budget.

In the second quarter, Chevron continued to pursue the development of renewable and lower carbon fuels. The company began to produce renewable diesel at its El Segundo, California refinery by co-processing bio-feedstock. The company also established its first branded compressed natural gas (CNG) station as part of its plan to sell renewable natural gas through more than 30 CNG stations in California by 2025. In addition, the company announced separate agreements to collaborate with Toyota Motor North America, Inc. and Cummins Inc. to advance its goal of building a commercially viable, large-scale hydrogen business.

UPSTREAM

Worldwide net oil-equivalent production was 3.13 million barrels per day in second quarter 2021, an increase of 5 percent from a year ago.

U.S. Upstream
		Three Months Ended June 30						Six Months Ended June 30
Millions of dollars			2021		2020				2021		2020
Earnings	$		1,446	$	(2,066	)	$		2,387	$	(1,825	)

U.S. upstream operations earned $1.4 billion in second quarter 2021, compared with a loss of $2.1 billion a year earlier. The improvement was primarily due to higher crude oil realizations and the absence of second quarter 2020 charges for special items including impairments, write-offs and severance accruals. Higher crude oil production also contributed to the improvement between periods.

The company’s average sales price per barrel of crude oil and natural gas liquids was $54 in second quarter 2021, up from $19 a year earlier. The average sales price of natural gas was $2.16 per thousand cubic feet in second quarter 2021, up from $0.81 in last year’s second quarter.

Net oil-equivalent production of 1.14 million barrels per day in second quarter 2021 was up 145,000 barrels per day from a year earlier. The increase was due to an additional 227,000 barrels per day of production following the Noble Energy acquisition and lower production curtailments, partially offset by a 68,000 barrels per day decrease related to the Appalachian asset sale and lower production due to normal field declines. The net liquids component of oil-equivalent production in second quarter 2021 increased 15 percent to 857,000 barrels per day, and net natural gas production also increased 15 percent to 1.68 billion cubic feet per day, compared to last year’s second quarter.

International Upstream
		Three Months Ended June 30						Six Months Ended June 30
Millions of dollars			2021		2020				2021		2020
Earnings*	$		1,732	$	(4,023	)	$		3,141	$	(1,344	)
*Includes foreign currency effects		$	78	$	(262	)	$		26	$	206

International upstream operations earned $1.7 billion in second quarter 2021, compared with a loss of $4.0 billion a year ago. The increase in earnings was primarily due to the absence of second quarter 2020 special item charges and benefits including write-offs and impairments, severance charges, tax items and the gain on the Azerbaijan asset sale as well as higher current quarter crude oil realizations. Foreign currency effects had a favorable impact on earnings of $340 million between periods.

The average sales price for crude oil and natural gas liquids in second quarter 2021 was $62 per barrel, up from $21 a year earlier. The average sales price of natural gas was $4.92 per thousand cubic feet in the second quarter, up from $4.48 in last year’s second quarter.

Net oil-equivalent production of 1.99 million barrels per day in second quarter 2021 decreased slightly from second quarter 2020. Higher production of an additional 148,000 barrels per day following the Noble Energy acquisition and lower production curtailments were more than offset by unfavorable entitlement effects and operational impacts. The net liquids component of oil-equivalent production decreased 8 percent to 990,000 barrels per day in second quarter 2021, while net natural gas production of 5.99 billion cubic feet per day increased 8 percent, compared to last year’s second quarter.

DOWNSTREAM

U.S. Downstream
		Three Months Ended June 30						Six Months Ended June 30
Millions of dollars			2021		2020				2021		2020
Earnings	$		776	$	(988	)	$		646	$	(538	)

U.S. downstream operations reported earnings of $776 million in second quarter 2021, compared with a loss of $988 million a year earlier. The increase was mainly due to higher margins on refined product sales, higher earnings from the 50 percent-owned Chevron Phillips Chemical Company, higher sales volumes, and lower operating expenses, including the absence of second quarter 2020 severance accruals.

Refinery crude oil input in second quarter 2021 increased 65 percent to 956,000 barrels per day from the year-ago period, as the company increased refinery runs in response to higher demand and the improved refining margin environment.

Refined product sales of 1.16 million barrels per day were up 40 percent from the year-ago period, mainly due to higher gasoline and jet fuel demand as travel restrictions associated with the COVID-19 pandemic eased.

International Downstream
		Three Months Ended June 30			Six Months Ended June 30
Millions of dollars		2021	2020		2021	2020
Earnings*	$63		$(22)	$198		$631
*Includes foreign currency effects		$1	$(23)		$60	$37

International downstream operations reported earnings of $63 million in second quarter 2021, compared with a loss of $22 million a year earlier. The increase in earnings was largely due to the absence of second quarter 2020 severance accruals. Foreign currency effects had a favorable impact on earnings of $24 million between periods.

Refinery crude oil input of 580,000 barrels per day in second quarter 2021 decreased 2 percent from the year-ago period.

Refined product sales of 1.28 million barrels per day in second quarter 2021 increased 16 percent from the year-ago period, mainly due to higher gasoline, jet fuel and diesel demand.

ALL OTHER

		Three Months Ended June 30							Six Months Ended June 30
Millions of dollars			2021			2020				2021			2020
Net Charges*	$		(935	)	$	(1,171	)	$		(1,913	)	$	(1,595	)
*Includes foreign currency effects		$	(36	)	$	(152	)		$	(45	)	$	(166	)

All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

Net charges in second quarter 2021 were $935 million, compared to $1.2 billion a year earlier. The decrease in net charges between periods was mainly due to the absence of second quarter 2020 severance accruals, partially offset by higher tax items and pension settlement costs. Foreign currency effects decreased net charges by $116 million between periods.

CASH FLOW FROM OPERATIONS

Cash flow from operations in the first six months of 2021 was $11.2 billion, compared with $4.8 billion in 2020. Excluding working capital effects, cash flow from operations in the first six months of 2021 was $12.2 billion, compared with $5.2 billion in 2020.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first six months of 2021 were $5.3 billion, compared with $7.7 billion in 2020. The amounts included $1.5 billion in 2021 and $2.3 billion in 2020 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 84 percent of the company-wide total in 2021.

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. To advance a lower-carbon future, we are focused on cost efficiently lowering our carbon intensity, increasing renewables and offsets in support of our business, and investing in low-carbon technologies that enable commercial solutions.

NOTICE

Chevron’s discussion of second quarter 2021 earnings with security analysts will take place on Friday, July 30, 2021, at 8:00 a.m. PT. A webcast of the meeting will be available in a listen-only mode to individual investors, media, and other interested parties on Chevron’s website at www.chevron.com under the “Investors” section. Prepared remarks for today’s call, additional financial and operating information and other complementary materials will be available prior to the call at approximately 3:15 a.m. PT and located under “Events and Presentations” in the “Investors” section on the Chevron website.

As used in this news release, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and “its” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

Please visit Chevron’s website and Investor Relations page at www.chevron.com and www.chevron.com/investors, LinkedIn: www.linkedin.com/company/chevron, Twitter: @Chevron, Facebook: www.facebook.com/chevron, and Instagram: www.instagram.com/chevron, where Chevron often discloses important information about the company, its business, and its results of operations.

Non-GAAP Financial Measures – This news release includes adjusted earnings/(loss), which reflect earnings or losses excluding significant non-operational items including impairment charges, write-offs, severance costs, Noble Energy acquisition costs, gains on asset sales, unusual tax items, effects of pension settlements and curtailments, foreign currency effects and other special items. During the first quarter of 2021, the Company updated its calculation of adjusted earnings to exclude pension settlement costs. The Company recognizes settlement gains or losses when the cost of all settlements for a plan during a year is greater than the sum of its service and interest costs during the year. By adjusting earnings to exclude pension settlement costs, the Company believes it removes non-operational costs that would otherwise obscure its underlying operating results. Adjusted earnings/(loss) for 2020 were recast to conform with the current presentation. We believe it is useful for investors to consider this measure in comparing the underlying performance of our business across periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. A reconciliation to net income (loss) attributable to Chevron Corporation is shown in Attachment 5.

This news release also includes free cash flow and free cash flow excluding working capital. Free cash flow is defined as net cash provided by operating activities less cash capital expenditures, and represents the cash available to creditors and investors after investing in the business. Free cash flow excluding working capital is defined as net cash provided by operating activities excluding working capital less cash capital expenditures and represents the cash available to creditors and investors after investing in the business excluding the timing impacts of working capital. The company believes these measures are useful to monitor the financial health of the company and its performance over time. A reconciliation of free cash flow and free cash flow excluding working capital are shown in Attachment 3.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for our products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related government policies and actions; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; changing refining, marketing and chemicals margins; the company’s ability to realize anticipated cost savings, expenditure reductions and efficiencies associated with enterprise transformation initiatives; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas during the COVID-19 pandemic; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from pending or future litigation; the company’s ability to achieve the anticipated benefits from the acquisition of Noble Energy, Inc.; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the receipt of required Board authorizations to pay future dividends; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 18 through 23 of the company’s 2020 Annual Report on Form 10-K and in other subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

CHEVRON CORPORATION – FINANCIAL REVIEW							Attachment 1
(Millions of Dollars, Except Per-Share Amounts)
(unaudited)

CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended June 30					Six Months Ended June 30
REVENUES AND OTHER INCOME	2021		2020			2021		2020

Sales and other operating revenues	$	36,117	$	15,926		$	67,193	$	45,631
Income (loss) from equity affiliates	1,442		(2,515		)	2,353		(1,550		)
Other income (loss)	38		83			80		914
Total Revenues and Other Income	37,597		13,494			69,626		44,995
COSTS AND OTHER DEDUCTIONS
Purchased crude oil and products	20,629		8,144			38,197		23,653
Operating expenses^*	6,160		7,198			12,454		13,270
Exploration expenses	113		895			199		1,053
Depreciation, depletion and amortization	4,522		6,717			8,808		11,005
Taxes other than on income	1,566		965			2,986		2,132
Interest and debt expense	185		172			383		334
Total Costs and Other Deductions	33,175		24,091			63,027		51,447
Income (Loss) Before Income Tax Expense	4,422		(10,597		)	6,599		(6,452		)
Income tax expense (benefit)	1,328		(2,320		)	2,107		(1,756		)
Net Income (Loss)	3,094		(8,277		)	4,492		(4,696		)
Less: Net income (loss) attributable to noncontrolling interests	12		(7		)	33		(25		)
NET INCOME (LOSS) ATTRIBUTABLE TO CHEVRON CORPORATION	$	3,082	$	(8,270	)	$	4,459	$	(4,671	)

* Includes operating expense, selling, general and administrative expense, and other components of net periodic benefit costs

PER-SHARE OF COMMON STOCK
Net Income (Loss) Attributable to Chevron Corporation
– Basic	$	1.61	$	(4.44	)	$	2.33	$	(2.51	)
– Diluted	$	1.60	$	(4.44	)	$	2.32	$	(2.51	)

Weighted Average Number of Shares Outstanding (000’s)
– Basic	1,917,536		1,853,313			1,915,243		1,857,793
– Diluted	1,921,958		1,853,313			1,918,940		1,857,793

CHEVRON CORPORATION – FINANCIAL REVIEW								Attachment 2
(Millions of Dollars)
(unaudited)

EARNINGS BY MAJOR OPERATING AREA	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Upstream
United States	$	1,446		$	(2,066	)	$	2,387		$	(1,825	)
International	1,732			(4,023		)	3,141			(1,344		)
Total Upstream	3,178			(6,089		)	5,528			(3,169		)
Downstream
United States	776			(988		)	646			(538		)
International	63			(22		)	198			631
Total Downstream	839			(1,010		)	844			93
All Other ⁽¹⁾	(935		)	(1,171		)	(1,913		)	(1,595		)
Total ⁽²⁾	$	3,082		$	(8,270	)	$	4,459		$	(4,671	)

SELECTED BALANCE SHEET ACCOUNT DATA (Preliminary)	June 30, 2021		Dec 31, 2020
Cash and Cash Equivalents	$	7,527	$	5,596
Marketable Securities	$	34	$	31
Total Assets	$	242,806	$	239,790
Total Debt	$	43,018	$	44,315
Total Chevron Corporation Stockholders’ Equity	$	133,182	$	131,688

	Three Months Ended June 30				Six Months Ended June 30
CAPITAL AND EXPLORATORY EXPENDITURES⁽³⁾	2021		2020		2021		2020
United States
Upstream	$	1,074	$	1,011	$	2,123	$	3,028
Downstream	264		178		506		454
Other	31		45		83		139
Total United States	1,369		1,234		2,712		3,621

International
Upstream	1,237		1,496		2,296		3,380
Downstream	174		573		272		721
Other	6		3		10		8
Total International	1,417		2,072		2,578		4,109
Worldwide	$	2,786	$	3,306	$	5,290	$	7,730
(1) Includes worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology companies.
(2) Net Income (Loss) Attributable to Chevron Corporation (See Attachment 1).
(3) Includes interest in affiliates:
United States	$	80	$	56	$	166	$	175
International	769		1,019		1,361		2,083
Total	$	849	$	1,075	$	1,527	$	2,258

CHEVRON CORPORATION – FINANCIAL REVIEW					Attachment 3
(Billions of Dollars)
(unaudited)

SUMMARIZED STATEMENT OF CASH FLOWS (Preliminary)⁽¹⁾
	Three Months Ended June 30			Six Months Ended June 30
OPERATING ACTIVITIES	2021			2021			2020
Net Income (Loss)	$	3.1		$	4.5		$	(4.7	)
Adjustments
Depreciation, depletion and amortization	4.5			8.8			11.0
Distributions more (less) than income from equity affiliates	(0.9		)	(1.4		)	2.3
Loss (gain) on asset retirements and sales	—			(0.1		)	(0.6		)
Net foreign currency effects	—			0.2			—
Deferred income tax provision	0.1			(0.2		)	(2.5		)
Net decrease (increase) in operating working capital	(0.1		)	(1.0		)	(0.4		)
Other operating activity	0.3			0.4			(0.2		)
Net Cash Provided by Operating Activities	$	7.0		$	11.2		$	4.8

INVESTING ACTIVITIES
Capital expenditures	(1.8		)	(3.5		)	(5.2		)
Proceeds and deposits related to asset sales and returns of investment	0.2			0.4			1.9
Other investing activity⁽²⁾	—			—			(1.1		)
Net Cash Used for Investing Activities	$	(1.6	)	$	(3.1	)	$	(4.4	)

FINANCING ACTIVITIES
Net change in debt	(2.5		)	(1.3		)	7.0
Cash dividends — common stock	(2.6		)	(5.0		)	(4.8		)
Net sales (purchases) of treasury shares	0.1			0.4			(1.6		)
Distributions to noncontrolling interests	—			—			—
Net Cash Provided by (Used for) Financing Activities	$	(4.9	)	$	(6.0	)	$	0.6

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	—			(0.1		)	(0.1		)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	$	0.4		$	2.0		$	0.9
(1) Totals may not match sum of parts due to presentation in billions.
(2) Primarily borrowings of loans by equity affiliates.

RECONCILIATION OF NON-GAAP MEASURES
Net Cash Provided by Operating Activities	$	7.0		$	11.2		$	4.8
Less: Capital expenditures	1.8			3.5			5.2
Free Cash Flow	$	5.2		$	7.7		$	(0.4	)
Less: Net decrease (increase) in operating working capital	(0.1		)	(1.0		)	(0.4		)
Free Cash Flow Excluding Working Capital	$	5.3		$	8.7		$	—

CHEVRON CORPORATION – FINANCIAL REVIEW

Attachment 4

(unaudited)

OPERATING STATISTICS ⁽¹⁾

Three Months

Ended June 30

Six Months

Ended June 30

NET LIQUIDS PRODUCTION (MB/D): ⁽²⁾

2021

2020

2021

2020

United States

857

747

829

775

International

990

1,077

1,008

1,120

Worldwide

1,847

1,824

1,837

1,895

NET NATURAL GAS PRODUCTION (MMCF/D): ⁽³⁾

United States

1,678

1,462

1,660

1,513

International

5,993

5,524

6,060

5,787

Worldwide

7,671

6,986

7,720

7,300

TOTAL NET OIL-EQUIVALENT PRODUCTION (MB/D): ⁽⁴⁾

United States

1,136

991

1,106

1,027

International

1,990

1,997

2,018

2,084

Worldwide

3,126

2,988

3,124

3,111

SALES OF NATURAL GAS (MMCF/D):

United States

3,776

3,863

3,843

4,113

International

4,756

5,430

5,092

5,828

Worldwide

8,532

9,293

8,935

9,941

SALES OF NATURAL GAS LIQUIDS (MB/D):

United States

215

219

207

227

International

180

104

166

122

Worldwide

395

323

373

349

SALES OF REFINED PRODUCTS (MB/D):

United States

1,159

827

1,105

993

International ⁽⁵⁾

1,282

1,104

1,274

1,188

Worldwide

2,441

1,931

2,379

2,181

REFINERY INPUT (MB/D):

United States

956

581

918

773

International

580

589

559

612

Worldwide

1,536

1,170

1,477

1,385

(1) Includes interest in affiliates.

(2) Includes net production of synthetic oil:

Canada

(3) Includes natural gas consumed in operations (MMCF/D):

United States

International

525

572

541

590

(4) Oil-equivalent production is the sum of net liquids production, net natural gas production and synthetic production. The oil-equivalent gas conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.

(5) Includes share of affiliate sales (MB/D):

342

351

341

353

CHEVRON CORPORATION – FINANCIAL REVIEW																												Attachment 5
(Millions of Dollars)
(unaudited)

RECONCILIATION OF NON-GAAP MEASURES
	Three Months Ended June 30, 2021								Three Months Ended June 30, 2020¹								Six Months Ended June 30, 2021								Six Months Ended June 30, 2020 ¹
REPORTED EARNINGS	Pre- Tax			Income Tax		After- Tax			Pre- Tax			Income Tax		After- Tax			Pre- Tax			Income Tax		After- Tax			Pre- Tax			Income Tax		After- Tax

U.S. Upstream						$	1,446							$	(2,066	)						$	2,387							$	(1,825	)
Int’l Upstream							1,732								(4,023	)							3,141								(1,344	)
U.S. Downstream							776								(988	)							646								(538	)
Int’l Downstream							63								(22	)							198								631
All Other							(935	)							(1,171	)							(1,913	)							(1,595	)
Net Income (Loss) Attributable to Chevron						$	3,082							$	(8,270	)						$	4,459							$	(4,671	)

SPECIAL ITEMS
U.S. Upstream
Impairments & write-offs	$	—		$	—	$	—		$	(1,575	)	$	385	$	(1,190	)	$	—		$	—	$	—		$	(1,575	)	$	385	$	(1,190	)
Severance accruals		—			—		—			(157	)		37		(120	)		—			—		—			(157	)		37		(120	)
Remediation charge		(158	)		38		(120	)		—			—		—			(158	)		38		(120	)		—			—		—
Int’l Upstream
Asset sale gains		—			—		—			310			—		310			—			—		—			550			—		550
Impairments & write-offs		—			—		—			(4,106	)		516		(3,590	)		—			—		—			(4,106	)		516		(3,590	)
Severance accruals		—			—		—			(374	)		84		(290	)		—			—		—			(374	)		84		(290	)
Tax Items		—			—		—			—			380		380			—			—		—			—			820		820
U.S. Downstream
Legal reserves		—			—		—			—			—		—			(140	)		30		(110	)		—			—		—
Severance accruals		—			—		—			(109	)		29		(80	)		—			—		—			(109	)		29		(80	)
Int’l Downstream
Severance accruals		—			—		—			(79	)		19		(60	)		—			—		—			(79	)		19		(60	)
All Other
Pension settlement costs		(151	)		36		(115	)		(60	)		14		(46	)		(468	)		112		(356	)		(120	)		28		(92	)
Severance accruals		—			—		—			(295	)		65		(230	)		—			—		—			(295	)		65		(230	)
Total Special Items	$	(309	)	$	74	$	(235	)	$	(6,445	)	$	1,529	$	(4,916	)	$	(766	)	$	180	$	(586	)	$	(6,265	)	$	1,983	$	(4,282	)

FOREIGN CURRENCY EFFECTS
Int’l Upstream						$	78							$	(262	)						$	26							$	206
Int’l Downstream							1								(23	)							60								37
All Other							(36	)							(152	)							(45	)							(166	)
Total Foreign Currency Effects						$	43							$	(437	)						$	41							$	77

ADJUSTED EARNINGS/(LOSS)²
U.S. Upstream						$	1,566							$	(756	)						$	2,507							$	(515	)
Int’l Upstream							1,654								(571	)							3,115								960
U.S. Downstream							776								(908	)							756								(458	)
Int’l Downstream							62								61								138								654
All Other							(784	)							(743	)							(1,512	)							(1,107	)
Total Adjusted Earnings/(Loss)						$	3,274							$	(2,917	)						$	5,004							$	(466	)
Total Adjusted Earnings/(Loss) per share						$	1.71							$	(1.56	)						$	2.61							$	(0.25	)

¹ Amounts recast to conform with the current presentation of excluding pension settlement costs. For additional information, please refer to the discussion under “Non-GAAP Financial Measures” in this news release.
² Adjusted Earnings/(Loss) is defined as Net Income (loss) attributable to Chevron Corporation excluding special items and foreign currency effects.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005127/en/

Sean Comey — +1 925-842-5509

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Oil/Gas Energy

MEDIA:

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July 30, 2021 6:03 am

Dime Community Bancshares, Inc. Reports 295% Increase in Net Income Year-Over-Year

Continued Focus on Enhancing Greater Long Island’s Premier Deposit Franchise

Cost of Deposits Declines to 0.17% and Non-Interest-Bearing Deposits Increase to 33.3% of Total Deposits

PPP Sale and Strong Earnings Result in Linked Quarter Increase in Capital Ratios

HAUPPAUGE, N.Y., July 30, 2021 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime” or “its”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $49.5 million for the quarter ended June 30, 2021, or $1.19 per diluted common share, compared with a net loss available to common stockholders of $22.9 million for the quarter ended March 31, 2021, or $0.66 per diluted common share, and net income available to common stockholders of $11.8 million for the quarter ended June 30, 2020, or $0.55 per diluted common share.

Adjusted net income to common stockholders (non-GAAP) totaled $39.1 million for the quarter ended June 30, 2021, or $0.94 per diluted share¹. Adjusted net income to common stockholders includes the following primary adjustments:

Gain on sale of Paycheck Protection Program (“PPP”) loans: As previously disclosed, the Company sold PPP loans it originated in 2021; this resulted in a pre-tax gain on sale of PPP loans of $20.7 million;
Branch restructuring costs: As previously disclosed, the Company plans to combine five branch locations into other existing branches in October 2021; associated branch restructuring costs were $1.7 million, pre-tax.
Merger expenses and transaction costs: The Company recorded merger expenses and transaction costs, associated with its merger of equals transaction, of $1.8 million, pre-tax;
Other Adjustments: Severance expense totaled $1.9 million, pre-tax, and loss on extinguishment of debt totaled $0.2 million, pre-tax.

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “During the second quarter we continued to grow Greater Long Island’s premier deposit franchise. Our high-quality deposit base, with over 33% of deposits in non-interest-bearing accounts, positions us well for the time when the Federal Reserve eventually raises interest rates. The sale of PPP loans along with strong earnings resulted in our tangible equity ratio increasing by 46 basis points on a linked quarter basis to 8.29%. In addition, our non-performing assets declined by approximately 20% on a linked quarter basis and represent only 0.22% of total assets.”

Mr. O’Connor continued, “Importantly, we have successfully executed on the cost savings outlined as part of our merger transaction. This is evidenced by our core efficiency ratio averaging approximately 48% for the last two quarters, which is below the 50% threshold we had outlined at the time of our merger of equals announcement. With the merger integration now behind us, our high quality, core-deposit funded balance sheet and strong pipelines provide me confidence in our future prospects.”

Highlights for the Second Quarter of 2021 Included:

The non-interest-bearing deposits to total deposits ratio increased to 33.3% at June 30, 2021 and the cost of deposits for the second quarter of 2021 was proactively managed lower to 0.17%;
Sold $596 million of PPP loans during the second quarter of 2021 resulting in a pre-tax gain of $20.7 million;
Sold approximately $50 million of criticized loans in the second quarter of 2021 to de-risk the balance sheet;
Excluding the sale of the aforementioned criticized loans, total loans excluding PPP loans increased by 3% on an annualized basis versus the linked quarter;
Capital levels were bolstered in the quarter as a result of the PPP sale and strong earnings; the tangible equity to tangible assets ratio increased to 8.29% at June 30, 2021;
The Company purchased 403,121 shares of its common stock, at a weighted average price of $34.33 per share;
Non-performing assets declined 20% on a linked quarter basis and net charge-offs to average loans were only 0.04%; and
The Company’s Adjusted Pre-tax Pre-provision Net Revenue (“PPNR”) for the second quarter was $52.7 million.¹

¹See reconciliation of this non-GAAP financial measure provided elsewhere herein.

Management’s Discussion of Quarterly Operating Results

The Company’s results of operations for the second quarter of 2021 include income for the full quarter from the merger with Bridge Bancorp, Inc. (“Bridge”), compared to two months for the first quarter of 2021 following the completion of the merger on February 1, 2021. The Company’s historical information for the second quarter of 2020 does not include the historical GAAP results of Bridge.

Net Interest Income

Net interest income for the second quarter of 2021 was $93.3 million compared to $77.8 million for the first quarter of 2021 and $43.6 million for the second quarter of 2020.

The table below provides a reconciliation of the reported Net Interest Margin (“NIM”), the NIM excluding the impact of PPP loans, and the NIM excluding purchasing accounting accretion on the loan portfolio.


($ in thousands)	Q2 2021				Q1 2021				Q2 2020
Net interest income	$	93,254			$	77,841			$	43,556
Less: Net interest income on PPP loans		(5,375	)			(4,092	)			(958	)
Adjusted net interest income excluding PPP loans, (non-GAAP)	$	87,879			$	73,749			$	42,598

Average interest-earning assets	$	11,990,107			$	10,057,598			$	6,091,545
Average PPP loan balances		(1,282,347	)			(1,020,910	)			(192,730	)
Adjusted average interest-earning assets excluding PPP loans, (non-GAAP)	$	10,707,760			$	9,036,688			$	5,898,815

NIM⁽¹⁾		3.12		%		3.14		%		2.86		%
Adjusted NIM excluding PPP loans (non-GAAP)⁽²⁾		3.29		%		3.31		%		2.89		%

Adjusted net interest income excluding PPP loans, (non-GAAP)	$	87,879			$	73,749			$	42,598
Less: Purchase Accounting Accretion on loans (“PAA”)		(1,925	)			(1,333	)			—
Adjusted net interest income excluding PPP loans and PAA on loans, (non-GAAP)	$	85,954			$	72,416			$	42,598
Adjusted NIM excluding PPP loans and PAA on loans, (non-GAAP) ⁽³⁾		3.23		%		3.26		%		2.89		%

(1) NIM represents net interest income divided by average interest-earning assets.
(2) Adjusted NIM excluding PPP represents adjusted net interest income, which excludes net interest income on PPP loans divided by average interest-bearing liabilities excluding PPP loans. The net interest income on PPP loans is calculated using interest income on the PPP balances less an assumed cost of funding the PPP loans, using the overall cost of funds of the Company.
(3) Adjusted NIM excluding PPP and PAA represents adjusted net interest income excluding PPP loans and PAA, divided by adjusted average interest-earning assets, excluding PPP loans.

Loan Portfolio

The ending weighted average rate (“WAR”) on the total loan portfolio was 3.67% at June 30, 2021, a 23 basis point increase compared to the ending WAR on the total loan portfolio at March 31, 2021. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.80% at June 30, 2021, compared to 3.83% at March 31, 2021.

Outlined below are loan balances and WARs⁽¹⁾ for the current quarter, linked quarter and prior year quarter.


	June 30, 2021				March 31, 2021				June 30, 2020
($ in thousands)	Balance		WAR		Balance		WAR		Balance		WAR
Loan balances at period end:
One-to-four family residential, including condominium and cooperative apartment	$	704,489	3.74	%	$	696,415	3.81	%	$	182,264	3.98	%
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,503,205	3.59			3,567,207	3.61			2,988,511	3.77
CRE		3,681,331	3.84			3,631,287	3.85			1,504,020	4.06
ADC		290,462	4.73			254,170	4.85			136,606	5.08
C&I		878,331	4.23			898,533	4.27			321,009	4.39
Other loans		23,275	5.01			24,409	4.97			1,463	7.49
Loans excluding SBA PPP		9,081,093	3.80			9,072,021	3.83			5,133,873	3.94

SBA PPP		465,538	1.00			1,434,077	1.00			310,509	1.00
Total loans including SBA PPP	$	9,546,631	3.67	%	$	10,506,098	3.44	%	$	5,444,382	3.77	%

⁽¹⁾ Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, divided by the total amount of loans in the category.
⁽²⁾ Includes multifamily loans underlying cooperatives.
⁽³⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations for the current quarter, linked quarter and prior year.


	Originations
($ in millions)	Q2 2021		Q1 2021		Q2 2020
Loans excluding PPP	$	425.7	$	336.4	$	204.0
PPP loans	$	36.4	$	573.3	$	319.4

Deposits and Borrowed Funds

Total deposits increased by $255.4 million on a linked quarter basis to $11.1 billion at June 30, 2021. Non-interest-bearing deposits increased $150.1 million during the second quarter of 2021 to $3.7 billion at June 30, 2021 and now represent 33.3% of total deposits.

The cost of total deposits for the quarter ended June 30, 2021 decreased to 0.17%, representing an 8 basis point linked quarter decline.

As of June 30, 2021, the Company had $437.2 million of certificates of deposit, with a weighted average rate of 0.41%, that were set to mature during the third quarter of 2021.

Total Federal Home Loan Bank advances were reduced to $25.0 million at June 30, 2021, compared to $533.9 million at March 31, 2021. Mr. O’Connor stated, “During the second quarter we paid down our Federal Home Loan Bank advance portfolio and we are now effectively a core deposit-funded institution without any wholesale leverage. This balance sheet structure positions us well for a rising interest rate scenario.”

Non-Interest Income

Non-interest income (loss) was $29.5 million during the second quarter of 2021, $(7.4) million during the first quarter of 2021, and $8.4 million during the second quarter of 2020. Excluding the gain on sale of PPP loans, adjusted non-interest income was $8.8 million during the second quarter of 2021 compared to $8.4 million during the first quarter of 2021 and $5.3 million during the second quarter of 2020. (see “Non-GAAP Reconciliation” table at the end of this news release).

Non-Interest Expense

Total non-interest expense was $54.9 million during the second quarter of 2021, $82.8 million during the first quarter of 2021, and $29.3 million during the second quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $48.5 million during the second quarter of 2021, compared to $41.4 million during the first quarter of 2021, and $24.3 million during the second quarter of 2020. (See “Non-GAAP Reconciliation” table at the end of this news release).

The ratio of non-interest expense to average assets was 1.72% during the first quarter of 2021, compared to 3.11% during the linked quarter and 1.84% for the first quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.52% during the second quarter of 2021, compared to 1.55% during the linked quarter and 1.52% for the second quarter of 2020. (see “Non-GAAP Reconciliation” table at the end of this news release).

The efficiency ratio was 44.7% during the second quarter of 2021, compared to 117.5% during the linked quarter and 56.5% during the second quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, severance expense, loss on extinguishment of debt, amortization of other intangible assets, gain on sale of PPP loans, the adjusted efficiency ratio was 47.5% during the second quarter of 2021, compared to 48.0% during the linked quarter and 49.9% during the second quarter of 2020. (see “Non-GAAP Reconciliation” table at the end of this news release).

Income Tax Expense

The reported effective tax rate for the second quarter of 2021 was 28.9%, compared to 25.2% for the first quarter of 2021, and 21.6% for the second quarter of 2020. The increase in the effective tax rate during the second quarter of 2021 was primarily the result of the increase in taxable income and non-deductible expenses during the period. The effective tax rate for the remainder of 2021 is expected to be approximately 27.5%.

Credit Quality

Non-performing loans at June 30, 2021 were $28.3 million, or 0.30% of total loans. Non-performing loans, excluding acquired PCD loans, would have been $18.5 million, or 0.20% of total loans excluding acquired PCD loans.

A credit loss recovery of $4.2 million was recorded during the second quarter of 2021, compared to a credit loss provision of $15.8 million during the first quarter of 2021, and a credit loss provision of $6.1 million during the second quarter of 2020. The credit loss recovery of $4.2 million for the second quarter of 2021 was primarily associated with the improvement in forecasted macroeconomic conditions.

The allowance for credit losses as a percentage of total loans was 0.97% at June 30, 2021 as compared to 0.93% at March 31, 2021 and 0.78% at June 30, 2020. Excluding PPP loans, the ratio of allowance for credit losses at June 30, 2021 would have been 1.02%.

Loans with Payment Deferrals

On a linked quarter basis, Principal and Interest (“P&I”) deferrals declined by approximately 33% and represent 0.5% of the total loan portfolio.

Capital Management

The Company’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements.

Mr. O’Connor commented, “Given our strong balance sheet and the comfort provided by the detailed third-party reviews we conducted on our loan portfolio as part of the merger transaction, we resumed our share repurchase program in the month of May. In the second quarter we repurchased 403,121 shares, totaling $13.8 million, and we continue to be active on the repurchase front into the third quarter.”

Dividends per common share were $0.24 during the second quarter of 2021.

Book value per common share was $26.43 and tangible common book value per share (common equity less goodwill and other intangible assets divided by number of shares outstanding) (see “Non-GAAP Reconciliation” tables at the end of this news release) was $22.41 at June 30, 2021.

Including the impact of the remaining unrecognized fees on PPP loans, net of tax, adjusted tangible common book value per share would have been $22.46. See “Non-GAAP Reconciliation” tables at the end of this news release for details.

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on July 30, 2021, during which CEO, Kevin M. O’Connor will discuss the Company’s second quarter performance, with a question and answer session to follow. Dial-in information for the live call is 1-888-348-2672. Upon dialing in, request to be joined into Dime Community Bancshares, Inc. call with the conference operator.

The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom210729.html. Dial-in information for the replay is 1-877-344-7529 using access code #10158072. Replay will be available July 30, 2021 (10:30 a.m.) through August 13, 2021 (11:59 p.m.).

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $12.7 billion in assets and number one deposit market share among community banks on Greater Long Island⁽¹⁾.

⁽¹⁾ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and/or the Bank; unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees increasingly work remotely.

Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)


	June 30,			March 31,			December 31,
	2021			2021			2020
Assets:
Cash and due from banks	$	1,184,183		$	676,723		$	243,603
Mortgage-backed securities available-for-sale, at fair value		863,239			846,529			426,979
Investment securities available-for-sale, at fair value		398,549			305,964			111,882
Marketable equity securities, at fair value		—			—			5,970
Loans held for sale		29,335			23,704			5,903
Loans held for investment, net:
One-to-four family and cooperative/condominium apartment		704,489			696,415			184,989
Multifamily residential and residential mixed-use ⁽¹⁾⁽²⁾		3,503,205			3,567,207			2,758,743
Commercial real estate (“CRE”)		3,681,331			3,631,287			1,878,167
Acquisition, development, and construction (“ADC”)		290,462			254,170			156,296
Total real estate loans		8,179,487			8,149,079			4,978,195
Commercial and industrial (“C&I”)		878,331			898,533			319,626
Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans		465,538			1,434,077			321,907
Other loans		23,275			24,409			2,316
Allowance for credit losses		(92,760	)		(98,200	)		(41,461	)
Total loans held for investment, net		9,453,871			10,407,898			5,580,583
Premises and fixed assets, net		51,127			53,829			19,053
Premises held for sale		2,799			—			—
Restricted stock		22,449			45,063			60,707
Bank Owned Life Insurance (“BOLI”)		293,113			251,521			156,096
Goodwill		155,339			155,339			55,638
Other intangible assets		9,792			10,627			—
Operating lease assets		69,189			69,094			33,898
Derivative assets		45,439			45,760			18,932
Accrued interest receivable		47,209			51,100			34,815
Other assets		78,052			75,477			27,551
Total assets	$	12,703,685		$	13,018,628		$	6,781,610
Liabilities:
Non-interest-bearing checking	$	3,689,072		$	3,538,936		$	780,751
Interest-bearing checking		1,101,038			1,023,164			290,300
Savings		1,305,028			1,078,687			414,809
Money market		3,670,090			3,629,709			1,716,624
Certificates of deposit		1,300,965			1,540,316			1,322,638
Total deposits		11,066,193			10,810,812			4,525,122
FHLBNY advances		25,000			533,865			1,204,010
Other short-term borrowings		1,841			126,763			120,000
Subordinated debt, net		197,188			197,234			114,052
Operating lease liabilities		72,170			71,249			39,874
Derivative liabilities		42,892			41,816			37,374
Other liabilities		94,125			64,065			40,082
Total liabilities		11,499,409			11,845,804			6,080,514
Stockholders’ equity:
Preferred stock, Series A		116,569			116,569			116,569
Common stock		416			416			348
Additional paid-in capital		492,848			492,431			278,295
Retained earnings		613,791			574,297			600,641
Accumulated other comprehensive gain (loss), net of deferred taxes		4,576			531			(5,924	)
Unearned equity awards		(8,529	)		(10,107	)		—
Common stock held by the Benefit Maintenance Plan		—			—			(1,496	)
Treasury stock, at cost		(15,395	)		(1,313	)		(287,337	)
Total stockholders’ equity		1,204,276			1,172,824			701,096
Total liabilities and stockholders’ equity	$	12,703,685		$	13,018,628		$	6,781,610

⁽¹⁾ Includes loans underlying multifamily cooperatives.
⁽²⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands except share and per share amounts)


	Three Months Ended								Six Months Ended
	June 30,			March 31,			June 30,		June 30,			June 30,
	2021			2021			2020		2021			2020
Interest income:
Loans	$	94,288		$	81,382		$	54,142	$	175,670		$	108,319
Securities		5,126			4,380			3,646		9,506			7,372
Other short-term investments		987			993			846		1,980			1,848
Total interest income		100,401			86,755			58,634		187,156			117,539
Interest expense:
Deposits and escrow		4,803			5,298			9,700		10,101			21,626
Borrowed funds		2,344			3,616			5,378		5,960			11,833
Total interest expense		7,147			8,914			15,078		16,061			33,459
Net interest income		93,254			77,841			43,556		171,095			84,080
(Credit) provision for credit losses		(4,248	)		15,779			6,060		11,531			14,072
Net interest income after (credit) provision		97,502			62,062			37,496		159,564			70,008

Non-interest income:
Service charges and other fees		3,876			2,920			1,083		6,796			2,286
Title fees		688			433			—		1,121			—
Loan level derivative income		559			1,792			2,494		2,351			3,657
BOLI income		1,593			1,339			911		2,932			2,798
Gain on sale of SBA loans excluding PPP		973			164			—		1,137			164
Gain on sale of PPP loans		20,697			—			—		20,697			—
Gain on sale of residential loans		506			723			206		1,229			357
Net gain (loss) on equity securities		—			131			436		131			(36	)
Net gain on sale of securities and other assets		20			710			3,134		730			3,142
Loss on termination of derivatives		—			(16,505	)		—		(16,505	)		—
Other		632			910			122		1,542			254
Total non-interest income (loss)		29,544			(7,383	)		8,386		22,161			12,622
Non-interest expense:
Salaries and employee benefits		27,598			24,819			15,197		52,417			30,714
Severance		1,875			—			3,930		1,875			4,000
Occupancy and equipment		8,122			6,977			3,959		15,099			8,015
Data processing costs		5,031			3,528			2,007		8,559			4,031
Marketing		788			860			218		1,648			795
Professional services		2,538			1,865			264		4,403			1,778
Federal deposit insurance premiums		934			939			529		1,873			1,006
Loss on extinguishment of debt		157			1,594			—		1,751			—
Curtailment loss		—			1,543			—		1,543			—
Merger expenses and transaction costs		1,836			37,942			1,072		39,778			1,658
Branch restructuring costs		1,659			—			—		1,659			—
Amortization of other intangible assets		835			357			—		1,192			—
Other		3,509			2,381			2,170		5,890			3,389
Total non-interest expense		54,882			82,805			29,346		137,687			55,386

Income (loss) income before taxes		72,164			(28,126	)		16,536		44,038			27,244
Income tax expense (benefit)		20,886			(7,092	)		3,570		13,794			5,886
Net income (loss)		51,278			(21,034	)		12,966		30,244			21,358
Preferred stock dividends		1,822			1,821			1,140		3,643			1,140
Net income (loss) available to common stockholders	$	49,456		$	(22,855	)	$	11,826	$	26,601		$	20,218

Earnings per common share (“EPS”):
Basic	$	1.19		$	(0.66	)	$	0.55	$	0.70		$	0.92
Diluted	$	1.19		$	(0.66	)	$	0.55	$	0.70		$	0.91

Average common shares outstanding for diluted EPS		40,981,585			34,262,005			21,541,918		37,640,404			22,028,192

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SELECTED FINANCIAL HIGHLIGHTS

(Dollars in thousands except per share amounts)


	At or For the Three Months Ended										At or For the Six Months Ended
	June 30,			March 31,				June 30,			June 30,			June 30,
	2021			2021				2020			2021			2020
Per Share Data:
Reported EPS (Diluted)	$	1.19		$	(0.66	)		$	0.55		$	0.70		$	0.91
Cash dividends paid per common share		0.24			0.24				0.22			0.48			0.43
Book value per common share		26.43			25.43				26.35
Tangible common book value per share ⁽¹⁾		22.41			21.43				23.75
Common shares outstanding		41,160			41,536				21,442
Dividend payout ratio		20.17	%		(36.36	)	%		40.00	%		68.57	%		47.25	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		1.61	%		(0.79	)	%		0.81	%		0.45	%		0.64	%
Return on average equity		17.22			(8.18	)			7.96			4.79			6.32
Return on average tangible common equity ⁽¹⁾		22.02			(11.58	)			9.23			6.49			7.72
Net interest margin		3.12			3.14				2.86			3.13			2.79
Non-interest expense to average assets		1.72			3.11				1.84			2.35			1.76
Efficiency ratio		44.7			117.5				56.5			71.2			57.3
Effective tax rate		28.94			25.22				21.59			31.32			21.60

Balance Sheet Data:
Average assets	$	12,756,909		$	10,666,619			$	6,389,768		$	11,717,336		$	6,298,859
Average interest-earning assets		11,990,107			10,057,598				6,091,545			11,029,192			6,020,454
Average tangible common equity ⁽¹⁾		908,747			781,355				512,371			845,298			523,983
Loan-to-deposit ratio at end of period		86.3			97.2				121.0

Capital Ratios and Reserves – Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.36	%		6.93		%		7.94	%
Tangible equity to tangible assets ⁽¹⁾		8.29			7.83				9.76
Tier 1 common equity ratio		9.93			9.65				10.69
Tier 1 risk-based capital ratio		11.18			10.91				13.07
Total risk-based capital ratio		14.26			14.04				16.29
Tier 1 leverage ratio		8.24			9.62				10.11
CRE consolidated concentration ratio ⁽²⁾		506			517				545
Allowance for credit losses/ Total loans		0.97			0.93				0.78
Allowance for credit losses/ Non-performing loans		327.94			276.24				276.23

⁽¹⁾ See “Non-GAAP Reconciliation” table for reconciliation of tangible equity, tangible common equity, and tangible assets. Average balances are calculated using the ending balance for months during the period indicated.
⁽²⁾ The CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner occupied commercial real estate, multifamily, and ADC, divided by consolidated capital. June 30, 2021 amounts are preliminary pending completion and filing of the Company’s regulatory reports.
⁽³⁾ June 30, 2021 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME

(Dollars in thousands)


	Three Months Ended
	June 30, 2021						March 31, 2021						June 30, 2020
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Real estate loans	$	8,156,368	$	74,437	3.66	%	$	7,039,881	$	66,144	3.81	%	$	4,867,970	$	49,058	4.03	%
Commercial and industrial loans		932,297		13,277	5.71			730,850		9,835	5.46			326,269		3,583	4.39
SBA PPP loans		1,282,347		6,174	1.93			1,020,910		5,049	2.01			192,730		1,488	3.09
Other loans		24,349		400	6.59			17,509		354	8.20			870		13	5.98
Mortgage-backed securities		825,949		3,483	1.69			665,190		3,080	1.88			468,705		3,064	2.61
Investment securities		312,012		1,643	2.11			199,918		1,300	2.64			65,155		582	3.57
Other short-term investments		456,785		987	0.87			383,340		993	1.05			169,846		846	1.99
Total interest-earning assets		11,990,107		100,401	3.36	%		10,057,598		86,755	3.50	%		6,091,545		58,634	3.85	%
Non-interest-earning assets		766,802						609,021						298,223
Total assets	$	12,756,909					$	10,666,619					$	6,389,768

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	1,067,043	$	501	0.19	%	$	662,273	$	351	0.21	%	$	222,694	$	212	0.38	%
Money market		3,712,344		1,941	0.21			2,893,723		1,987	0.28			1,656,394		2,495	0.60
Savings		1,189,460		212	0.07			863,409		207	0.10			404,389		305	0.30
Certificates of deposit		1,421,480		2,149	0.61			1,522,017		2,753	0.73			1,511,598		6,688	1.77
Total interest-bearing deposits		7,390,327		4,803	0.26			5,941,422		5,298	0.36			3,795,075		9,700	1.02
FHLBNY advances		145,324		132	0.36			853,162		1,711	0.81			962,657		4,047	1.68
Subordinated debt, net		197,218		2,211	4.50			168,607		1,902	4.57			113,955		1,330	4.67
Other short-term borrowings		5,514		1	0.07			15,021		3	0.08			2,747		1	0.15
Total borrowings		348,056		2,344	2.70			1,036,790		3,616	1.41			1,079,359		5,378	1.99
Total interest-bearing liabilities		7,738,383		7,147	0.37	%		6,978,212		8,914	0.52	%		4,874,434		15,078	1.24	%
Non-interest-bearing checking		3,652,482						2,494,630						618,107
Other non-interest-bearing liabilities		175,031						164,859						245,908
Total liabilities		11,565,896						9,637,701						5,738,449
Stockholders’ equity		1,191,013						1,028,918						651,319
Total liabilities and stockholders’ equity	$	12,756,909					$	10,666,619					$	6,389,768
Net interest income			$	93,254					$	77,841					$	43,556
Net interest rate spread					2.99	%					2.98	%					2.61	%
Net interest margin					3.12	%					3.14	%					2.86	%
Deposits (including non-interest-bearing checking accounts)	$	11,042,809	$	4,803	0.17	%	$	8,436,052	$	5,298	0.25	%	$	4,413,182	$	9,700	0.88	%

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS

(Dollars in thousands)


	At or For the Three Months Ended
		June 30,			March 31,			June 30,
Asset Quality Detail		2021			2021			2020
Non-performing loans (NPLs) ⁽¹⁾
One-to-four family residential, including condominium and cooperative apartment		$	4,933		$	5,384		$	819
Multifamily residential and residential mixed-use			—			4,844			1,377
CRE			9,152			10,595			3,003
Acquisition, development, and construction (“ADC”)			—			104			—
C&I			14,109			14,523			10,176
Other			92			99			2
Total Non-accrual loans		$	28,286		$	35,549		$	15,377

Loans 90 days delinquent and accruing (“90+ Delinquent”)
One-to-four family residential, including condominium and cooperative apartment		$	5,065		$	45		$	44
Multifamily residential and residential mixed-use			157			2,871			1,480
CRE						2,259			2,167
ADC			—			—			—
C&I			1,487			3,652			—
Other			—			—			—
90+ Delinquent		$	6,709		$	8,827		$	3,691

NPAs and 90+ Delinquent		$	34,995		$	44,376		$	19,068

NPAs and 90+ Delinquent / Total assets			0.28	%		0.34	%		0.28	%
Net charge-offs (NCOs)		$	918		$	4,275		$	31
NCOs / Average loans ⁽¹⁾			0.04	%		0.19	%		0.00	%

(1) Excludes loans held for sale

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles (“GAAP”) (as reported) and non-GAAP. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the Company’s merger with Legacy Bridge.


	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
	2021				2021				2020				2021				2020
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income (loss) available to common stockholders	$	49,456			$	(22,855	)		$	11,826			$	26,601			$	20,218
Adjustments to net income (loss)^(1):
Provision for credit losses – Non-PCD loans (double-count)		—				20,278				—				20,278				—
Gain on sale of PPP loans		(20,697	)			—				—				(20,697	)			—
Net gain on sale of securities and other assets		—				(710	)			(3,134	)			(710	)			(3,142	)
Loss on termination of derivatives		—				16,505				—				16,505				—
Severance		1,875				—				3,930				1,875				4,000
Loss on extinguishment of debt		157				1,594				—				1,751				—
Curtailment loss		—				1,543				—				1,543				—
Merger expenses and transaction costs⁽²⁾		1,836				37,942				1,072				39,778				1,658
Branch restructuring costs		1,659				—				—				1,659				—
Income tax effect of adjustments and other tax adjustments		4,852				(21,848	)			(445	)			(16,996	)			(552	)
Adjusted net income available to common stockholders (non-GAAP)	$	39,138			$	32,449			$	13,249			$	71,587			$	22,182

Adjusted Ratios (Based upon non-GAAP as calculated above)
Adjusted EPS (Diluted)	$	0.94			$	0.94			$	0.61			$	1.88			$	1.00
Adjusted return on average assets		1.28		%		1.29		%		0.90		%		1.28		%		0.74		%
Adjusted return on average equity		13.76				13.32				8.84				13.55				7.30
Adjusted return on average tangible common equity		17.48				16.74				10.34				17.13				8.47
Adjusted non-interest expense to average assets		1.52				1.55				1.52				1.53				1.58
Adjusted efficiency ratio		47.5				48.0				49.9				47.7				53.2

⁽¹⁾ Adjustments to net income are taxed at the Company’s statutory tax rate of approximately 31% unless otherwise noted.
⁽²⁾ Certain merger expenses and transaction costs are non-taxable expense.

The following table presents a reconciliation of net interest income, non-interest income, and non-interest expense to pre-tax pre-provision net revenue (non-GAAP) and adjusted pre-tax pre-provision net revenue (non-GAAP):


	Three Months Ended
	June 30, 2021
Net interest income	$	93,254
Non-interest income		29,544
Total revenues		122,798
Non-interest expense		54,882
Pre-tax pre-provision net revenue (non-GAAP) (1)	$	67,916

Adjustments:
Net gain on sale of PPP loans		(20,697	)
Severance		1,875
Loss on extinguishment of debt		157
Merger expenses and transaction costs		1,836
Branch restructuring costs		1,659
Adjusted pre-tax pre-provision net revenue (non-GAAP) (2)	$	52,746

⁽¹⁾The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest loss less GAAP non-interest expense.
⁽²⁾The adjusted pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding pre-tax pre-provision net revenue less the net gain on sale of PPP loans, severance, loss on extinguishment of debt, merger expenses and transaction costs, and branch restructuring costs.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2021			2021			2020			2021			2020
Operating expense as a % of average assets – as reported	1.72		%	3.11		%	1.84		%	2.35		%	1.76		%
Loss on extinguishment of debt	—			(0.06	)		—			(0.03	)		—
Curtailment loss	—			(0.06	)		—			(0.03	)		—
Severance	(0.06	)		—			(0.25	)		(0.03	)		(0.13	)
Merger expenses and transaction costs	(0.06	)		(1.43	)		(0.07	)		(0.68	)		(0.05	)
Branch restructuring costs	(0.05	)		—			—			(0.03	)		—
Amortization of other intangible assets	(0.03	)		(0.01	)		—			(0.02	)		—
Adjusted operating expense as a % of average assets (non-GAAP)	1.52			1.55			1.52			1.53			1.58

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):


	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
	2021				2021				2020				2021				2020
Efficiency ratio – as reported (non-GAAP) (1)		44.7		%		117.5		%		56.5		%		71.2		%		57.3		%
Non-interest expense – as reported	$	54,882			$	82,805			$	29,346			$	137,687			$	55,386
Less: Severance		(1,875	)			—				(3,930	)			(1,875	)			(4,000	)
Less: Merger expenses and transaction costs		(1,836	)			(37,942	)			(1,072	)			(39,778	)			(1,658	)
Less: Branch restructuring costs		(1,659	)			—				—				(1,659	)			—
Less: Loss on extinguishment of debt		(157	)			(1,594	)			—				(1,751	)			—
Less: Curtailment loss		—				(1,543	)			—				(1,543	)			—
Less: Amortization of other intangible assets		(835	)			(357	)			—				(1,192	)			—
Adjusted non-interest expense (non-GAAP)	$	48,520			$	41,369			$	24,344			$	89,889			$	49,728
Net interest income – as reported	$	93,254			$	77,841			$	43,556			$	171,095			$	84,080
Non-interest income (loss) – as reported	$	29,544			$	(7,383	)		$	8,386			$	22,161			$	12,622
Less: Gain on sale of PPP loans		(20,697	)			—				—				(20,697	)			—
Less: Net gain on sale of securities and other assets		—				(710	)			(3,134	)			(710	)			(3,142	)
Less: Loss on termination of derivatives		—				16,505				—				16,505				—
Adjusted non-interest income (non-GAAP)	$	8,847			$	8,412			$	5,252			$	17,259			$	9,480
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	102,101			$	86,253			$	48,808			$	188,354			$	93,560
Adjusted efficiency ratio (non-GAAP) (2)		47.5		%		48.0		%		49.9		%		47.7		%		53.2		%

⁽¹⁾The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest (loss) income.
⁽²⁾The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents the tangible assets, tangible common equity, and adjusted tangible common book value per share calculation (non-GAAP):


	June 30,		March 31,		June 30,
	2021		2021		2020
Reconciliation of Tangible Assets:
Total assets	$	12,703,685	$	13,018,628	$	6,467,521
Less:
Goodwill		155,339		155,339		55,638
Other intangible assets		9,792		10,627		—
Tangible assets (non-GAAP)	$	12,538,554	$	12,852,662	$	6,411,883

Reconciliation of Adjusted Tangible Common Equity – Consolidated:
Total stockholders’ equity	$	1,204,276	$	1,172,824	$	681,543
Less:
Goodwill		155,339		155,339		55,638
Other intangible assets		9,792		10,627		—
Tangible equity (non-GAAP)		1,039,145		1,006,858		625,905
Less:
Preferred stock, net		116,569		116,569		116,569
Tangible common equity (non-GAAP)	$	922,576	$	890,289	$	509,336
Add:
Unamortized deferred fees on PPP loans, net of tax		1,979		16,901		6,191
Adjusted tangible common equity (non-GAAP)	$	924,555	$	907,190	$	515,527

Common shares outstanding		41,160		41,536		21,442
Tangible common book value per share (non-GAAP)	$	22.41	$	21.43	$	23.75
Adjusted tangible common book value per share (non-GAAP)	$	22.46	$	21.84	$	24.04

July 30, 2021 5:40 am

Sify reports Revenues of INR 6451 Million for First Quarter of FY 2021-22

EBITDA for the Quarter stood at INR 1454 Million

CHENNAI, India, July 30, 2021 (GLOBE NEWSWIRE) —

PERFORMANCE HIGHLIGHTS:

Revenue for the quarter was INR 6451 Million, a growth of 23% over the same quarter last year

.
EBITDA for the quarter was INR 1454 Million, an increase of 26% over the same quarter last year.
Profit before tax for the quarter was INR 440 Million, an increase of 65% over the same quarter last year.
Profit after tax for the quarter was INR 329 Million, an increase of 91% over the same quarter last year.
CAPEX during the quarter was INR 917 Million.
Cash balance at the end of the quarter was INR 3515 Million.

MANAGEMENT COMMENTARY

Mr. Raju Vegesna, Chairman, said, “Lessons learned from dealing with the first wave of the pandemic have stood us in good stead as we continue to provide mission-critical ICT services in a challenging environment. India has quickly bounced back from the second with Enterprises slowly returning to at-office business. Mid-sized business, which bore the brunt of the pandemic, are becoming more active in the market for automation solutions. Sify is proud to have played a small role in helping Indian Enterprises to sustain their operations and become more resilient.

This year, critical requirements like the National data policy and continued remote access will push security to the top of the priority list for Enterprises. This is also expected to accelerate the interest in data center space on a pan-India basis.”

Mr. Kamal Nath, CEO, said, “With industries and people steadily returning to work, digitalization decisions are being accelerated. The trends of the previous quarters continue to be relevant, resulting in sustained interest in our Cloud@core portfolio of services. Work from anywhere, migration to hosted DC and hybrid cloud platform, strengthening of disaster recovery plans to enable business continuity, application modernization – all these market trends are reflected in our current customer engagements.

Data Center colocation business is one of the fastest growing segments in India. It is led by Hyperscale Cloud Providers, followed by Enterprises and supporting telecommunications players. We expect this to drive our future growth, alongside Cloud, Network and Digital services business.”

Mr. M P Vijay Kumar, CFO, said, “The operating performance has been stable. We continue to invest in expansion of our data centers, network connectivity and digital services. We will stay focused on our cost efficiency and liquidity management, given that the economic recovery is still regaining lost ground due to the pandemic.

Cash balance at the end of the quarter was INR 3515 Million.”

FINANCIAL HIGHLIGHTS

Unaudited Consolidated Income Statement as per IFRS
(In INR millions)
	Quarter ended		Quarter ended		Quarter ended		Year ended
Description	June		June		March		March
	2021		2020		2021		2021
							(Audited)

Revenue	6,451		5,259		6,860		24,320
Cost of Revenues	(3,906	)	(3,103	)	(4,016	)	(14,703	)
Selling, General and Administrative Expenses	(1,091	)	(1,003	)	(1,391	)	(4,532	)

EBITDA	1,454		1,153		1,453		5,085

Depreciation and Amortisation expense	(802	)	(658	)	(801	)	(2,836	)
Net Finance Expenses	(227	)	(236	)	(195	)	(790	)
Other Income (including exchange gain)	17		15		63		156
Other Expenses (including exchange loss)	(2	)	(8	)	–		(15	)

Profit before tax	440		266		520		1,600
Current Tax	(118	)	(101	)	(250	)	(672	)
Deferred Tax	7		7		581		604
Profit for the period	329		172		851		1,532

Profit attributable to:
Reconciliation with Non-GAAP measure
Profit for the period	329		172		851		1,532
Add:
Depreciation and Amortisation expense	802		658		801		2,836
Net Finance Expenses	227		236		195		790
Other Expenses (including exchange loss)	2		8		–		15
Current Tax	118		101		250		672
Less:
Deferred Tax	(7	)	(7	)	(581	)	(604	)
Other Income (including exchange gain)	(17	)	(15	)	(63	)	(156	)
EBITDA	1,454		1,153		1,453		5,085

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f285746f-3ec6-4a4e-8808-39e0f1ab2974

BUSINESS HIGHLIGHTS

Revenue from Data Center centric IT Services grew 45% against the same quarter last year.
Segment-wise, revenue from Data Center Services grew 38%, Cloud and Managed Services grew 24%, Applications Integration Services grew 153% and Technology Integration Services grew 20%.
Revenue from Network centric Services grew by 3% over the same quarter last year.
Segment-wise, revenue from Data Connectivity Services grew 7% while revenue from the Voice business fell by 14%.

GROWTH DRIVERS

The pandemic has accelerated the primary growth drivers in the market for cloud adoption, led by digital initiatives and transformation. This trend is triggering movement of workloads from on-premise Data Centers to Hyperscale Public Cloud and hosted Private Cloud in varied degrees, based on the digital objectives of Enterprises. This results in transformation of the traditional network architecture and transformation at the edge which connects the end user. The need for digital services like analytics, data lakes, IoT, etc are shifting the focus toward adoption of Hybrid and Public Cloud vs Private Cloud. Collectively, these trends are generating opportunities for full scale Cloud, DC and Network service providers with digital services skills.

KEY WINS

A summary of the major categories of customers who are signing up with Sify include:

Customers choosing Sify for migration of their on-premise data center to multi-cloud platforms like Cloudinfinit, AWS, Azure and Oracle. They also often entrust Sify with management and security.
Customers choosing Sify as their DC Hosting partner as they embrace hybrid cloud strategy.
Customers choosing Sify as their multi-service Digital Transformation partner.
Customers choosing Sify as their Network Transformation and Management partner as they migrate to Cloud-ready networks.

A consolidated summary of the key highlights during the quarter is noted below:

Data Center centric IT Services highlights include:

A subsidiary of one of the oldest Indian MNCs contracted to migrate their on-premise DC to AWS Cloud, while another subsidiary contracted to migrate their SAP Workload to AWS Cloud.
A couple of startups, among them a gaming company and an OTT platform provider, signed up to migrate to a global CDN platform.
A nodal agency implementing payment related activities for the Central bank migrated to Sify Data Center.
A major paint manufacturer and a digital transformation startup focused on the financial sector contracted to move from their on-premise DC to Sify DC.
One of the country’s largest Private banks and a prominent Public sector finance institution contracted Sify to commission Private Cloud at their Data Center.
A State data center contracted to augment their Data Center and deploy non-IT services.
A Public sector bank migrated to Sify DC as part of their consolidation and expansion exercise.
Sify’s Cloud-based backend supply chain integration platform signed a prominent player in retail and another in healthcare, an online education platform, a financial services company and multiple non-banking financial companies.
Multi-year contracts for building and augmenting Security Operations Center came from two Public Services Insurance majors.
A Regional bank signed up to implement Digital certification for the universal ID and a private bank signed up for managed services.
Sify was accredited as an Independent Software Vendor for WhatsApp for Business.

Network centric services highlights include:

Sify added 53 new Network Services customers in the quarter.
One of the largest Private banks in the country contracted to connect their network to Near line Disaster Recovery.
A Private scheduled bank signed up for network consolidation and a large cooperative bank signed up to connect a few hundred locations.
A global retail major and a generic pharmaceutical multinational contracted with Sify for managed and secure SD-WAN services.
A Fortune Global 500 consulting major signed up for Cloud based collaboration services.
One of the country’s oldest MNCs contracted Sify to commission their Network Operation Center.
A social media major and a global OTT platform signed up for network nodes and connectivity expansion.
Sify invested in upgradation of the core backbone to 100G to support the next phase of growth and also in fresh capacity in key cities.

About Sify Technologies

A Fortune India 500 company, Sify Technologies is India’s most comprehensive ICT service & solution provider. With Cloud at the core of our solutions portfolio, Sify is focussed on the changing ICT requirements of the emerging Digital economy and the resultant demands from large, mid and small-sized businesses.

Sify’s infrastructure comprising state-of-the-art Data Centers, the largest MPLS network, partnership with global technology majors and deep expertise in business transformation solutions modelled on the cloud, make it the first choice of start-ups, SMEs and even large Enterprises on the verge of a revamp.

More than 10000 businesses across multiple verticals have taken advantage of our unassailable trinity of Data Centers, Networks and Security services and conduct their business seamlessly from more than 1600 cities in India. Internationally, Sify has presence across North America, the United Kingdom and Singapore.

Sify, www.sify.com, Sify Technologies and www.sifytechnologies.com are registered trademarks of Sify Technologies Limited.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements.

For a discussion of the risks associated with Sify’s business, please see the discussion under the caption “Risk Factors” in the company’s Annual Report on Form 20-F for the year ended March 31, 2021, which has been filed with the United States Securities and Exchange Commission and is available by accessing the database maintained by the SEC at www.sec.gov, and Sify’s other reports filed with the SEC.

For further information, please contact:

Sify Technologies Limited

Mr. Praveen Krishna
Investor Relations & Public Relations
+91 9840926523
[email protected]

20:20 Media

Nikhila Kesavan
+91 9840124036
[email protected]

Grayling Investor Relations

Shiwei Yin
+1-646-284-9474
[email protected]